Cimarron Express Pipeline
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Cimarron Express Pipeline is an oil pipeline in Oklahoma, USA, that is assumed to be cancelled.[1][2]
Location
The pipeline would run from Kingfisher County, Oklahoma, USA to Cushing, Oklahoma, USA.
Project details
- Owner: Alta Mesa Resources (50%), Ergon (50%)
- Proposed capacity: 175 million barrels per day
- Length: 104.6 kilometers / 65 miles
- Status: Cancelled
- Start year: intended for 2019
Background
Blueknight Energy Partners will construct and operate the pipeline, which will connect to Kingfisher’s crude oil gathering system in northeastern Kingfisher County, Oklahoma. Completion is expected in the second financial quarter of 2019.[1]
The newly formed joint venture Cimarron Express Pipeline LLC will serve crude oil producers in Central Oklahoma. Kingfisher Midstream LLC, a wholly owned subsidiary of Alta Mesa Resources Inc., Blueknight Energy Partners LP and affiliates of Ergon Inc. announced on May 10 the execution of definitive agreements to form Cimarron Express. The venture will include the construction and operation of a new crude oil pipeline serving STACK producers, short for Sooner Trend Anadarko Basin Canadian and Kingfisher counties producers, in central Oklahoma with a 65-mile, 16-in. crude oil pipeline extending from northeastern Kingfisher County, Oklahoma, to Blueknight’s crude oil terminal in Cushing. The pipeline will provide direct market access at Cushing for producers and will have an initial capacity of 90,000 barrels per day (bpd), expandable to more than 175,000 bpd. The new pipeline is expected to be completed in mid-2019. The ownership of Cimarron Express will be 50 percent Kingfisher Midstream and 50 percent Ergon. The receipt terminal for the Cimarron Express pipeline will be located at Kingfisher Midstream’s crude oil storage facility in northeastern Kingfisher County. The pipeline will connect to Kingfisher Midstream’s crude oil gathering system and truck unloading facilities at the company’s crude oil facility.[3]
In April 2018, construction was underway.[4]
As of December 2018, about US$30 million had been spent on the project.[5]
In January of 2020, Cimarron Express Pipeline LLC filed for voluntary Chapter 11 bankruptcy protection in the Eastern District of Texas. Cimarron Express Pipeline LLC listed assets ranging from US$100,000,001 to US$500 million and debts ranging from US$100,000,001 to US$500 million.[2]
There is at least one claim that the pipeline was in operation at some point.[6] However, due to the bankruptcy filing of the parent company, and because there is no other evidence for progress of the pipeline since construction began in 2018, the project is assumed to be cancelled.[7]
Articles and resources
References
- ↑ 1.0 1.1 Planned Pipelines, Pipeline News, accessed Aug. 25, 2021.
- ↑ 2.0 2.1 The week in bankruptcies: Kingfisher Midstream LLC, Kingfisher STACK Oil Pipeline LLC and 9 more , BizJournals, Jan. 28, 2020, accessed Aug. 25, 2021.
- ↑ Cimarron Express Crude Oil Pipeline to Serve STACK Play in Oklahoma, North America Oil and Gas Pipelines, May 16, 2018
- ↑ Richard Lejeune, Blueknight Energy Partners: A 12.1% Yield As This Deeply Hated Stock Rebounds, Seeking Alpha, Aug. 29, 2018, accessed Aug. 25, 2021.
- ↑ Cimarron Project Update SEC Form 8-K, US SEC, Feb. 26, 2019, accessed Aug. 25, 2021.
- ↑ Oklahoma’s Blueknight Rakes in $162 Million for Crude Oil Midstream Assets, Natural Gas Intelligence, Dec. 22, 2020
- ↑ Housley Carr, That Was Then, This Is Now, Part 2 - New Crude Pipeline Capacity Out Of The Cushing Hub, RBN Energy LLC, Oct. 20, 2019, accessed Aug. 25, 2021.
