East Texas to Houston: Blueknight’s $300M, 160-mile link

TEXAS – An Oklahoma City midstream company plans to build a $300 million, 160-mile pipeline linking East Texas oil plays to the Houston Ship Channel.

Blueknight Energy Partners LP will construct a 16-inch diameter pipeline to run south from Madison County to Oiltanking Houston, a crude oil terminal on the Houston Ship Channel.

The pipeline looks to take advantage of the Eaglebine and Woodbine crude oil plays. Capacity will begin at 100,000 barrels a day with the potential to reach 200,000 barrels daily.

The project already has business commitments from a joint venture between Switzerland-based Vitol Inc. and Tennessee-based SEI Energy LLC, a natural gas and crude oil services company.

The pipeline will be named Knight Warrior Pipeline to honor U.S. veterans and is expected to be complete by March 2016.