US-based midstream energy company Blueknight Energy Partners (BKEP) has announced its plans to extend its Pecos River Pipeline and an open season for the extension.
The company has plans to extend the 112.6km long pipeline by another 152km (95 miles) to transport crude oil from the Southeastern New Mexico to Crane in Texas.
BKEP will also hold an open season for the producers from 4 March, 2013, to secure commitment for crude oil transportation via the pipeline.
The company is undertaking the pipeline extension project to serve the emerging crude oil production areas in the Southeastern New Mexico and Culberson and Reeves Counties in Texas.
The extension will allow the producers an access to the Gulf Coast and Midland markets.
Blueknight Energy Partners chief executive officer Mark Hurley said the pipeline extension will provide producers and shippers with a critical link to the Gulf coast market.
"The proposed 95 mile extension will afford shippers and producers in the rapidly developing production area of New Mexico and around Pecos, Texas a similar opportunity to efficiently and affordably move their crude to markets where they can optimize the price," Hurley added.
The transportation capacity of the extension could reach 100,000 barrels per day depending upon the producer and shipper commitments.
Pecos River Pipeline extension segment is expected to begin services by the first quarter of 2015.