Vitol, Blueknight to construct oil terminal
Aug 23, 2011 10:46 AM
Vitol Midstream LLC, a member of the Vitol Group; and Blueknight Energy Partners LP (BKEP) have entered into agreements for the construction and operation of a new crude oil terminal in Midland TX.
Vitol Midstream has acquired 90 acres in Midland County, where it will construct a new storage terminal and unloading stations for trucks. The site will be connected by pipeline to major crude oil terminals in Midland. Vitol Midstream has secured pipeline connectivity agreements with Centurion Pipeline LP and Enterprise Crude Pipeline LLC. These agreements will allow it to expand along with market demands.
The initial construction phase will consist of one million barrels of crude oil storage with six truck unloading stations. BKEP will coordinate and supervise the engineering and construction stages of the design for Vitol Midstream. Additionally, BKEP and Vitol Midstream have also entered into an agreement for BKEP to operate and maintain the new facility and all connecting pipelines.
BKEP will operate Vitol Midstreamís truck receipt and crude oil movements from BKEPís central control facility in Cushing OK. Personnel with BKEP will also provide on-site operating and maintenance services.
For more information, visit www.bkep.com.
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