The JP Energy Partners affiliate said it will build the new pipeline as a part of a 15-year agreement it entered with US-based Tug Hill Operating to transport crude oil from south-central Kansas to Cushing, Oklahoma.

Construction of the Kansas Express, the second pipeline in the Mississippian Lime play, is being undertaken to transport crude oil from the play to Cushing and accommodate the additional producers.

JP Energy Partners president and chief executive J Patrick Barley said, "This is a significant development for oil producers in northern Oklahoma and Kansas who will have additional means to move their product to market quickly and efficiently."

The company is planning to begin the construction of the first phase of the new pipeline in the first quarter of 2013.

Kansas Express pipeline is expected to be about 12in in diameter and begin service by January 2014 and the final design capacity will depend on the commitment from the shippers.