The $132 million sale of Blueknight Energy Partners holdings in the Cushing crude oil storage facility is no small deal for Canadian buyer Enbridge Inc. It turns Enbridge into an even stronger crude oil delivery company in the world.
Enbridge just acquired 34 of those massive storage tanks and soon its name will be on the crude storage tanks and not Blueknight Energy. The tanks have a current capacity of 6.6 million barrels and the purchase will increase Enbridge capacity to 26 million at Cushing.
Enbridge was already the second largest storage operation at Cushing and energy observers say this week’s deal with Blueknight will give the Canadian company a definite competitive advantage. It will also provide Enbridge with more connectivity to producers in several basins across the U.S.
Enbridge, headquartered in Calgary, Alberta is noted to have one of the longest crude and liquids pipeline systems in the world. It spreads across 17,127 miles
Blueknight’s sale and Enbridge’s acquisition won’t be finalized until sometime in the coming spring.