Blueknight seeking commitments for Pecos River Pipeline extension
BY ROD WALTON World Staff Writer
Wednesday, February 27, 2013
Blueknight Energy Partners LP plans to add a 95-mile extension connecting to the new Pecos River Pipeline in west Texas, the midstream energy firm announced Wednesday.
The extension will run from southern New Mexico into Culberson and Reeves counties of Texas. The Pecos River Pipeline will carry up to 150,000 barrels in crude oil daily from Pecos to Crane, Texas.
Blueknight bought a 30-percent stake in the 70-mile Pecos system earlier this month for an undisclosed sum. The Crane part of the pipeline will feed into Tulsa-based Magellan Midstream Partners LP’s Longhorn system, which is being reversed to carry crude oil to the Gulf Coast.
“The Pecos River Pipeline extension establishes a critical link to the attractive Gulf Coast market hubs for producers and shippers actively drilling in the area,” Blueknight CEO Mark Hurley said in a statement. “The proposed 95 mile extension will afford shippers and producers in the rapidly developing production area of New Mexico and around Pecos, Texas a similar opportunity to efficiently and affordably move their crude to markets where they can optimize the price.”
Blueknight is headquartered in Oklahoma City where Hurley’s offices, but the firm still maintains a support office employing about 35 people in Tulsa. Chief Financial Officer Alex Stallings, the company’s human resources and accounting operations are based in Tulsa.