Medallion Delaware Express, LLC (Delaware Express) and Medallion Pipeline Company, LLC (Medallion) are conducting an open season to solicit binding, long-term commitments to support an expansion of the Delaware Express and Medallion pipeline systems for an expanded joint tariff service. Through the joint tariff service, shippers receive an integrated transportation service for the transportation of crude oil produced in the Delaware Basin to multiple market centres and long-haul pipelines connected to the Medallion pipeline system. Prospective shippers will have the opportunity to participate in the open season and make binding commitments to both Delaware Express and Medallion for the expanded joint tariff service under either acreage dedication or volume commitment transportation agreements (transportation services agreements) at volume incentive rates.
The existing Delaware Express pipeline system aggregates crude produced oil on two discrete gathering system in Reeves, Pecos and Ward counties in the southern Delaware Basin and transports the crude oil on a 61 mile, 16 in. diameter mainline to interconnections with downstream pipelines, including Medallion. Delaware Express also accepts crude oil delivered by truck at its Independence Station and Eagle Eye Station on the Delaware Express mainline. An affiliate of Delaware Express owns storage tank and truck unloading facilities at the Independence Station and the Eagle Eye Station.
The existing Medallion pipeline is a network of approximately 800 miles of 6 in. and larger crude oil pipeline in the Midland Basin. Through the joint tariff service, Medallion receives crude oil from Delaware Express at the interconnection between Delaware Express and Medallion near Medallion’s Crane Hub. Medallion delivers crude oil transported under the joint tariff to the Crane Hub, the Midland Hub and the Colorado City Hub, which provide access to multiple large-volume pipelines that serve various downstream markets.
Subject to the outcome of this open season, Delaware Express and Medallion will expand their systems to provide additional joint tariff service. Delaware Express will construct new gathering facilities to connect crude oil production in Reeves County and Medallion and Delaware Express will expand their mainline systems to transport the new production. The Delaware Express and Medallion mainline capacity for joint tariff transportation will be expanded over time as crude oil production from the new dedicated acreage increases.
Open season process
The open season began 12 April 2019 and ends at 4.00 pm CST on 10 May 2019. All bids must be submitted during the open season, except as provided in the open season notice. Bona fide prospective shippers may obtain copies of the transportation services agreements, as well as the filed joint tariffs by contacting the representative listed below. Prospective shippers must execute a confidentiality agreement prior to delivery of these documents.
Read the article online at: https://www.worldpipelines.com/business-news/15042019/joint-tariff-service-for-transportation-of-delaware-basin-crude-oil/