Blueknight Energy Partners LP (BKEP) has agreed with Advantage Pipeline LLC to acquire 30% ownership in the 70-mile Pecos River crude oil pipeline from Pecos, Tex., to Crane, Tex. The 16-in. OD pipeline will allow West Texas producers to deliver to Gulf Coast markets through a connection to Magellan Midstream Partners LP’s Longhorn Pipeline at Crane.
BKEP will operate the pipeline under a long-term agreement with Advantage. Advantage said construction will begin promptly with initial service expected by end-May.
Magellan Midstream announced it was proceeding with the conversion to crude service and reversal of the Crane-to-Houston segment of Longhorn in 2011. Initial capacity is 135,000 b/d, expandable to 225,000 b/d if demand warrants (OGJ Online, Feb. 22, 2012).
