Blueknight announces intent to form JV with Silverado Pipeline to co-develop East Texas pipeline.
M2 EQUITYBITES-May 7, 2013-Blueknight announces intent to form JV with Silverado Pipeline to co-develop East Texas pipeline(C)2013 M2 COMMUNICATIONS http://www.m2.com
Midstream energy company Blueknight Energy Partners LP (BKEP) (NASDAQ:BKEP) (NASDAQ:BKEPP) declared on Monday that it is planning to form a joint venture with Silverado Pipeline LLC.
The two companies intend to work together to co-develop and reactivate a 200-mile crude oil pipeline between Longview and Houston, Texas.
This pipeline would provide producers with an alternative, and cost effective, means to transport crude oil to the premium markets in the Houston Ship Channel, commented Royston Lightfoot, Silverado Pipeline managing member.
The project includes the activation of approximately 200 miles of existing 10" and 12" pipeline owned by Silverado, adding necessary crude oil storage and providing connectivity to the Houston market.
Subject to commitments from shippers, BKEP and Silverado intend to form a joint venture to manage the reactivation of the pipeline and BKEP would operate the pipeline under a long-term agreement with Silverado. The partners expect the project, named the Silver Eagle pipeline, to take approximately one year to become operational.
Financial details were not available.
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|Publication:||M2 EquityBites (EQB)|
|Date:||May 7, 2013|
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