Blueknight Energy Partners (BKEP) and Advantage Pipeline (Advantage) have started with the Phase I of the Pecos River Pipeline in west Texas.
BKEP has an approximately 30% share in the project, and operates the pipeline under a long-term service agreement with Advantage. Commercial service 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, started in September 2013. 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, " 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."
Phase II is scheduled to be completed by the year-end and is expected to extend the pipeline an additional 29 miles to the west to Reeves, Culberson, Pecos and Ward counties.