US midstream company Blueknight Energy Partners has agreed several deals to sell its crude oil terminalling, pipeline, and trucking business segments for US$162 million (€132.5 million).
CEO Andrew Woodward says that the ‘transformational’ transactions are part of Blueknight’s transition into a pure-play downstream terminalling business focussed on infrastructure and transportation end markets, and that the transactions will position the partnership for long-term growth.
Canadian-based Enbridge has bought the crude oil terminalling business for US$132 million. The facility, in Cushing, Oklahoma, comprises 34 tanks with a capacity of 6.6 million bbl, and will bring Enbridge’s total capacity in Cushing to 26 million bbl. Enbridge says that the acquisition will allow it to retain its ranking as the second largest storage operator in Cushing, as well as provide connectivity to new production basins, Oklahoma and the Rockies. The transaction is expected to close in early 2021.
‘For our customers, we’re expanding our storage capabilities and connections in Cushing which brings more optionality, flexibility and value. This brings value for our customers and is important to our company as part of our US Gulf Coast strategy,’ says Enbridge vice president of business development, US, Vince Paradis.
Enbridge wants to direct oil to the Gulf Coast, which is home to the US’ largest refining complex, and is an important transshipment point and trading hub.
CVR Energy subsidiaries have paid US$20 million for Blueknight’s crude oil pipeline business, excluding crude oil linefill and inventory. The business includes 972 km of pipeline and 300,000 bbl of related crude oil storage in Oklahoma.
The trucking business has been sold to an undisclosed buyer.