Medallion Pipeline Company, LLC has announced the successful closing of its binding open season for a major expansion of its existing crude oil pipeline system in the Midland Basin (the ‘Expansion’). As previously announced, Medallion will expand six segments of its pipeline system to transport increased quantities of crude oil, produced from acreage proximate to Medallion’s system, to downstream pipelines and markets.
Based on the capacity bids received during the open season, Medallion has received long-term binding commitments sufficient to move forward with the construction of the Expansion. The Expansion is expected to commence commercial operations in phases, with full commercial operations occurring during 4Q19.
“The continued interest of potential shippers in increased pipeline capacity in the Midland Basin, is compelling,” said Randy Lentz, CEO of Medallion. “We are excited about the significant production growth in the region and the opportunity to meet the growing demand for pipeline capacity.”
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 will open on 16 August 2018, and will close as of 4 pm CDT on 22 August 2018. All bids must be submitted to Medallion during the supplemental open season. Bona fide prospective shippers may obtain copies of the Transportation Services Agreement, as well as the proposed Federal Energy Regulatory Commission and Texas Railroad Commission tariffs by contacting the Medallion representative. Medallion requires a prospective shipper to execute a Confidentiality Agreement prior to delivery of these documents. More information concerning the Expansion and the binding open season is available on the Medallion website.
Read the article online at: https://www.worldpipelines.com/business-news/16082018/medallion-pipeline-announces-successful-open-season/