Blueknight and Silverado Pipeline Announce Plans to Develop East Texas Pipeline
OKLAHOMA CITY--(BUSINESS WIRE)-- Blueknight Energy Partners, L.P. (NAS: BKEP) (NAS: BKEPP) ("BKEP" or the "Partnership"), a midstream energy company providing integrated services for companies engaged in the production, distribution and marketing of crude oil, asphalt and other petroleum products, announced today its intention to form a joint venture with Silverado Pipeline, LLC to co-develop and reactivate a 200-mile crude oil pipeline between Longview and Houston, Texas.
"Longview has become a very active crude oil hub, but has limited connectivity and capacity to reach the Houston market. With existing production as well as the significant development projected in the East Texas area, this pipeline will provide a more efficient means of transporting crude oil to the Gulf Coast," stated Mark Hurley, BKEP's chief executive officer.
BKEP and Silverado have agreed to jointly evaluate developing a transportation option out of the area. The project will include the activation of approximately 200 miles of existing 10" and 12" pipeline owned by Silverado, adding necessary crude oil storage and providing connectivity to the Houston market.
Subject to commitments from shippers, BKEP and Silverado intend to form a joint venture to manage the reactivation of the pipeline. BKEP would operate the pipeline under a long-term agreement with Silverado. The project, named the Silver Eagle pipeline, is expected to take approximately one year to be operational.
"We are pleased to partner with Blueknight to develop this pipeline which will provide producers with an alternative, and cost effective, means to transport crude oil to the premium markets in the Houston Ship Channel," said Royston Lightfoot, Managing Member, Silverado Pipeline LLC.
This release may include forward-looking statements. Statements included in this release that are not historical facts are forward-looking statements. These statements include, but are not limited to, statements with respect to the formation of a joint venture and the estimated time to become operational. Such forward-looking statements are subject to various risks and uncertainties. These risks and uncertainties include, among other things, uncertainties relating to the Partnership's future cash flows and operations, the Partnership's ability to pay future distributions, future market conditions, current and future governmental regulation, future taxation and other factors discussed in the Partnership's filings with the Securities and Exchange Commission. If any of these risks or uncertainties materializes, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those expected. The Partnership undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
About Blueknight Energy Partners, L.P.
BKEP owns and operates a diversified portfolio of complementary midstream energy assets consisting of approximately 7.8 million barrels of crude oil storage located in Oklahoma and Texas, approximately 6.6 million barrels of which are located at the Cushing Oklahoma Interchange, approximately 1,264 miles of crude oil pipeline located primarily in Oklahoma and Texas, approximately 280 crude oil transportation and oilfield services vehicles deployed in Kansas, Colorado, New Mexico, Oklahoma and Texas and approximately 7.2 million barrels of combined asphalt product and residual fuel oil storage located at 44 terminals in 22 states. BKEP provides integrated services for companies engaged in the production, distribution and marketing of crude oil, asphalt and other petroleum products. BKEP is headquartered in Oklahoma City, Oklahoma. For more information, visit the Partnership's web site at www.bkep.com.
About Silverado Pipeline LLC
Silverado Pipeline LLC is a privately held company with headquarters in Dallas, Texas and operations in Longview, Texas. For more information, visit Silverado's web-site at www.silveradopipeline.com.
Investor Relations, 918-237-4032
Brent Gooden, 405-715-3232 or 405-818-1900
KEYWORDS: United States North America Oklahoma Texas
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