Blueknight Energy Partners, which is a US midstream company, has agreed several deals to sell its crude oil terminalling, pipeline, and trucking business segments for $162 million.
Canadian-based Enbridge bought the crude oil terminalling business for $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.
CVR Energy subsidiaries have paid $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.
Blueknight’s CEO Andrew Woodward said the “transformational” transactions are part of its 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.
The trucking business has been sold to an undisclosed buyer.
Enbridge said 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.
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