Vitol Group and Blueknight Energy Partners Announce Plans To Construct New Crude Oil Terminal In Midland Texas

abarrelfullabarrelfull wrote on 16 Aug 2011 05:27
Tags: blueknight storage texas usa vitol

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Vitol Midstream, LLC, (“Vitol Midstream”) a member of the Vitol Group (“Vitol”) and Blueknight Energy Partners, L.P. (“BKEP,” NASDAQ: BKEP) today announced they have entered into agreements for the construction and operation of a new crude oil terminal in Midland, Texas.

Vitol Midstream has acquired 90 acres in Midland County where it will construct a new storage terminal and unloading stations for trucks. The Vitol Midstream site will be connected by pipeline to the major crude oil terminals in Midland. Vitol Midstream has secured pipeline connectivity agreements with Centurion Pipeline L.P. and Enterprise Crude Pipeline LLC. These agreements will allow Vitol Midstream to expand along with market demands.

The initial construction phase will consist of 1,000,000 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.

“Vitol’s new West Texas terminal reflects our continuing commitment to build state-of-the-art facilities in strategic locations in support of our customers’ crude oil supply and logistical needs,” said Mike Loya, President of Vitol Inc., parent of Vitol Midstream LLC.

Joe Simon, Vice President of Vitol Inc.’s crude oil marketing division added, “West Texas – New Mexico is a strategic region for our crude oil marketing business. The Midland terminal will significantly increase our ability to receive barrels from our customers’ rapidly increasing production. The truck facilities have been specifically designed to expedite truck deliveries. With this investment, Vitol is making a long-term commitment to the region.”

BKEP will operate Vitol Midstream’s truck receipt and crude oil movements from BKEP’s central control facility in Cushing, Okla. BKEP personnel will also provide on-site operating and maintenance services. Mike Prince, BKEP’s Vice President for Business Development, commented, “This transaction is part of our business development plan to facilitate the specific transportation and storage needs of crude oil producers. The Midland terminal highlights Blueknight as an integrated midstream service company capable of developing unique solutions.”

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