Blueknight Energy Partners, L.P. launched an open season on March 4 to solicit shipper commitments to transport crude from southern New Mexico to Crane, TX.
Interested customers had to submit binding commitments by April 12. According to the company, southeastern New Mexico and Culberson and Reeves counties in Texas represent emerging crude oil production areas that are underserved by pipeline capacity.
A proposed 95-mile extension will connect to BKEP’s Pecos River Pipeline which is expected to start operation shortly and will provide shippers access to the Gulf Coast and Midland markets. Depending on the open season, the North Extension’s crude transport capacity could reach up to 100,000 bpd and begin service in 2015.
BKEP has entered into an agreement with Advantage Pipeline, L.L.C. to acquire 30% ownership in a 70-mile crude oil pipeline to be constructed between Pecos and Crane. The Pecos River Pipeline will enable west Texas producers to deliver crude to Gulf Coast markets through a pipeline connection at Crane. BKEP will operate the pipeline under a long-term agreement with Advantage.