OKLAHOMA CITY--(BUSINESS WIRE)--Blueknight Energy Partners, L.P. ("BKEP" or the "Partnership") (NASDAQ: BKEP) (NASDAQ: BKEPP), and Advantage Pipeline, L.L.C. (“Advantage”) announced today the startup of Phase I of the Pecos River Pipeline in west Texas.
BKEP has approximately 30% ownership and operates the pipeline under a long-term service agreement with Advantage. On September 17, 2013, commercial service started on Phase I of the system consisting of the Highway 18 Station near Grandfalls, Texas and 36 miles of pipeline connecting to the Longhorn Pipeline in Crane, Texas. The 16" diameter pipeline and associated terminals addresses the vital need for increased transportation capacity capable of efficiently transporting crude to Gulf Coast markets from the active west Texas producing region.
Mike Shelton, Advantage President, stated, "The start of commercial service for the Pecos River Pipeline marks a milestone in building support infrastructure to ensure sustained production growth in west Texas. Teaming with Blueknight supports our goal to offer customers superior midstream services and greater value in transporting their crude to market. We are committed to further developing this pipeline as production activity accelerates in the region in the coming years."
Mark Hurley, BKEP Chief Executive Officer, stated further, "We commend Advantage Pipeline for delivering this key project on time and within budget. Producer interest in the Pecos River Pipeline remains strong from growing demand for a safe, reliable and affordable option to expeditiously transport crude to Gulf Coast markets. Our operations team in Midland is already executing on strategies to grow utilization of this pipeline as well as other midstream assets we operate in the region including the Vitol Midland terminal."
Completion of Phase II is expected before year end and will extend the pipeline an additional 29 miles to the west where it will capture produced volumes in Reeves, Culberson, Pecos and Ward counties.
This release may include forward-looking statements. Statements included in this release that are not historical facts are forward-looking statements. 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.