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Medallion announces open season for crude oil pipeline

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World Pipelines,

Medallion Pipeline Company, LLC (Medallion), a subsidiary of Medallion Midstream LLC, has announced a binding open season for a major expansion of its existing crude oil pipeline system in the Midland Basin (the Wolfcamp expansion). The company hopes to solicit long term firm shipper commitments by doing so.

The Wolfcamp expansion project will consist of two parts: the Wolfcamp expansion, which will nearly double the capacity of Medallion’s existing Wolfcamp Connector mainline; and the Howard expansion, which will increase the capacity of the existing Howard Lateral. These plans will allow Medallion to have much needed capacity to transport crude oil produced in the Midland Basin to downstream pipelines and markets.

The open season begins on Tuesday 16 May, and ends at 5pm (CDT) Friday 9 June. It provides an opportunity for interested shippers to acquire long term firm capacity, under minimum 10 year term Transportation Services Agreements and other eligibility requirements, as a committed firm shipper on either the Wolfcamp expansion, the Howard Lateral or both. The open season also will provide existing firm shippers on the Wolfcamp Connector the option to amend their existing Transportation Services Agreements to obtain the lower Wolfcamp expansion firm rate in return for an extension of the primary term of the Transportation Services Agreement commensurate with the minimum term required on the Wolfcamp expansion.

The Wolfcamp expansion consists of a 16 in. partial loop of the Wolfcamp Connector mainline. The expansion will commence at the existing Howard-Wolfcamp Interconnect and extend 47 miles to the Colorado City Hub, where Medallion interconnects with several third-party carriers. This expansion will increase the existing capacity on the Wolfcamp Connector mainline, from 105 000 bpd - 200 000 bpd, and provide firm shippers on the Wolfcamp Connector with multiple options for the receipt and delivery of crude oil.

Medallion will also expand the capacity of the existing Howard Lateral. The Howard expansion will increase Howard Lateral’s current 60 000 bpd capacity to 85 000 bpd through the addition of pumping horsepower. Due to the bidirectional capabilities of the Howard Lateral, firm shippers on the Howard Expansion will have the flexibility to transport crude oil on several transportation paths.

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US pipeline news Crude oil pipeline news Onshore pipeline news