TransMontaigne Partners (TMP) and Blueknight Energy Partners (BKEP), a midstream energy asset company, have signed an agreement to jointly build and operate 1 million barrels of crude oil storage next to BKEP’s Cushing, Oklahoma facility in the US.
TMP is to lease a section of BKEP’s land to build storage tanks and related buildings on the property in order to receive crude oil by both truck and pipeline. Once into the facility, the oil will be blended and stored in a facility which will be able to handle up to 1 million barrels.
The facility is expected to open in August 2011, with the second half of the development coming into operation by the second quarter of 2012. The estimated cost for the total project will be about $25 million (€17.2 million).