Delek Logistics Partners, LP announced that Paline Pipeline Company, LLC is seeking minimum volume commitments for crude oil transportation service from the origin points of Hanks Station and Longview (Texas, USA) to the destination point of Nederland (Texas), in exchange for volume incentive rates at a discount to the uncommitted rate for the same hauls.
Paline also expects to develop new tank staging facilities to serve these origin points that should enter service in the first quarter of 2019, and shippers making minimum volume commitments would also be entitled to discount rates for tankage service at these facilities upon their completion and during the term of their volume commitments.
Shippers making minimum volume commitments would execute a transportation services agreement with Paline. Service at the discounted rates for transportation would commence in the first quarter of 2018, with minimum volume commitments terminating either two or three years from the in-service date of the tank staging facilities, as may be selected by the customer.
Paline is also considering a future pipeline capacity expansion for service on these routes. Shippers that execute a transportation services agreement for a minimum volume commitment at this time would have the opportunity to reduce that commitment by a to-be-determined amount if they execute transportation services agreements in any open season to be held with respect to any such future pipeline capacity expansion project.
Read the article online at: https://www.worldpipelines.com/business-news/10012018/minimum-crude-volume-commitments-being-pursued-for-paline-pipeline/