Blueknight Energy in new pipeline project to serve Eaglebine producers

|About: Blueknight Energy Partners (BKEP)|By:, SA News Editor

Blueknight Energy (NASDAQ:BKEP) announces plans to build a new 160-mile pipeline linking the east Texas Eaglebine/Woodbine crude oil resource play to Oiltanking Partners' (NYSE:OILT) crude oil and product terminal on the Houston Ship Channel.

The $300M pipeline will have an initial capacity of 100K bbl/day, expandable up to 200K bbl/day, and is backed by long-term shipper commitments.

Midstream firms haven’t built new pipeline systems in the area in years, but oil producers have been moving back; much of the oil is now stranded in the Eaglebine, surrounded by smaller pipelines systems that were in service decades ago.