Kingfisher Midstream, a wholly owned subsidiary of Alta Mesa Resources, Blueknight Energy Partners (BKEP), and affiliates of Ergon have formed Cimarron Express Pipeline joint venture.
The ownership of Cimarron Express will be 50 percent Kingfisher Midstream and 50 percent Ergon.
Ergon, owner of the general partner of BKEP, will hold its ownership in Cimarron Express through a newly created, wholly owned subsidiary, ERGON – OKLAHOMA PIPELINE.
The venture will include the construction and operation of a new crude oil pipeline serving STACK producers in central Oklahoma with a new 65-mile, 16-inch crude oil pipeline extending from northeastern Kingfisher County, Okla., to BKEP’s Cushing, Okla., crude oil terminal.
The pipeline will provide direct market access at Cushing for producers and will have an initial capacity of 90,000 barrels per day, expandable to more than 175,000 barrels per day.
Under the terms of the agreement, BKEP will construct and operate the pipeline. Also, BKEP will continue to operate its existing crude oil storage facilities in Cushing, Okla.
The new pipeline is expected to be completed in mid-2019.
