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Medallion Midstream to construct pipeline

Published by
World Pipelines,

Medallion Midstream and its affiliate, Medallion Midstream Services, have recently entered into a letter of intent to construct a new Delaware Basin crude oil pipeline system. The system will provide crude oil gathering and transportation services for Parsley Energy.

The new pipeline will be anchored by Parsley’s long-term dedication of approximately 35 000 acres to Medallion, held under lease and/or mineral interest in the Pecos and Reeves counties (Texas).

Medallion’s Delaware Basin pipeline system will initially consist of approximately 45 miles of 16 in. mainline and 25 miles of smaller diameter gathering pipes, along with a crude oil station in Pecos county. The pipeline is expected to have an initial capacity of 100 000 bpd. It will originate in the Parsley leases and end in Crane county at an interconnection into Medallion Pipeline Company’s existing 600 mile Midland Basin system.

The parties hope to finalise a definitive agreement in 1Q17 and the pipeline is expected to begin service in June.

“We are honored that Parsley has chosen Medallion to provide crude oil gathering and transportation services for its core Delaware Basin acreage,” said Medallion’s Chief Executive Officer, Randy Lentz.


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