Vitol, Blueknight To Build Oil Terminal In West Texas

Vitol, Blueknight To Build Oil Terminal In West Texas

HOUSTON & TULSA, Okla. — Vitol Midstream LLC and Blueknight Energy Partners LP (BKEP) recently 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 secured pipeline connectivity agreements with Centurion Pipeline LP 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 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.

“West Texas to New Mexico is a strategic region for our crude oil marketing business,” said Joe Simon, vice president of the crude oil marketing division at Vitol Inc., a parent company of Vitol Midstream. “The Midland terminal will significantly increase our ability to receive barrels from our customers’ rapidly increasing production.” 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 onsite operating and maintenance services.

For more information, visit www.Vitol.com or call (713) 230-1000, or visit www.bkep.com or call (918) 237-4032.

BIC Magazine
Author: BIC Magazine, bicnews@bicalliance.com

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