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Blueknight Energy, Silverado in joint venture to develop pipeline
May 6 (Reuters) - Blueknight Energy Partners LP, a midstream oil company controlled by global oil trader Vitol SA, said it will form a joint venture with Silverado Pipeline LLC to develop and reactivate a 200-mile (322 km) crude oil pipeline between Longview and Houston.
"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," said Blueknight's Chief Executive Mark Hurley.
The project, which will include the activation of about 200 miles of the existing 10-inch and 12-inch pipelines presently owned by Silverado, will be named Silver Eagle pipeline and is expected to be in operation in about a year.
On Feb. 4, Blueknight bought a 30 percent stake in the Pecos River Pipeline, a 70-mile (113-km) line connecting Pecos to Crane, Texas, to send more local crude to the Gulf Coast.
Despite Longview becoming an active crude oil hub, it has limited connectivity and capacity to reach the Houston market and Blueknight will evaluate transporting the crude oil from the pipeline, it said in a statement.
Blueknight Energy's shares closed at $8.61 on Monday on the Nasdaq.
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