Medallion Pipeline announced this week the successful closing of its binding open season for a major expansion to its existing crude oil pipeline system in the Midland Basin.
As previously announced, Medallion will expand six segments of its pipeline system to transport increased quantities of crude oil, produced from acreage near Medallion’s system, to downstream pipelines and markets.
Medallion plans to construct a 16-inch operational loop of its existing Midkiff Lateral and plans to expand the capacity of the Crane Extension, Reagan Gathering Extension, Santa Rita Lateral, Martin Lateral and Midland Lateral.
Initially placed in service in October 2014, Medallion’s crude oil pipeline has undertaken a series of expansions to meet the increasing needs of producers and marketers in the Midland Basin.
“The continued interest of potential shippers in increased pipeline capacity in the Midland Basin is compelling,” said Randy Lentz, CEO of Texas-based Medallion.
The existing system is a network of roughly 700 miles of 6-inch and larger crude oil pipeline facilities that aggregate and transport crude oil production to the Colorado City (Texas) Hub, the Crane Hub and the Midland Hub, providing access to multiple long-haul, large-volume pipelines for transportation to downstream markets.
Based on the capacity bids received during the open season, Medallion has received long-term binding commitments sufficient to move forward with construction.
The expansion is expected to commence commercial operations in phases, with full commercial operations occurring during the fourth quarter of 2019, Kallanish Energy reports.
Because of the interest expressed by potential shippers during the open season, and based on ongoing discussions with potential shippers, Medallion is conducting a supplemental open season to solicit additional binding long-term commitments for expanded capacity.
The supplemental open season is subject to the same terms and conditions as originally proposed in the open season. The supplemental open season maintains the same transportation options, the same origin and destination points, the same rates and provides the same options for existing committed shippers as proposed in the open season.
The supplemental open season opened Aug. 16, and will close Aug. 22.
https://www.shaledirectories.com/blog/medallion-announces-successful-open-season-for-line-expansion/
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