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Medallion plans major expansion of crude oil pipeline

Published by
World Pipelines,


Medallion Pipeline Company, LLC (Medallion) yesterday announced a binding open season to solicit long-term, firm shipper commitments for a major expansion of its crude oil pipeline system in the Midland Basin. Through the open season, Medallion proposes to expand six pipeline segments to transport increased quantities of crude oil, produced from acreage proximate to Medallion’s system, to downstream pipelines and markets. The open season began 16 July 2018 and ends Wednesday 15 August 2018 at 4.00 pm CDT.

To address the growing need for pipeline capacity in the region, Medallion plans to construct a 16 in. operational loop of its existing Midkiff Lateral and plans to expand the capacity of the Crane Extension, Reagan Gathering Extension, Santa Rita Lateral, Martin Lateral and Midland Lateral (Expansion Segments). The open season provides an opportunity for interested shippers to acquire long-term firm capacity under binding Transportation Services Agreements, as a committed firm shipper on one or more of the Expansion Segments. Prospective shippers are provided with two commitment tiers subject to a minimum five-year commitment.

Additionally, existing firm shippers will be provided the option to amend their existing Transportation Services Agreements, as set forth in the open season notice, to 1) adjust committed volumes or 2) obtain the lower expansion rates offered on the applicable Expansion Segments in return for an extension of the primary term of the Transportation Services Agreement. The expansion project is expected to commence commercial operations in phases, with full commercial operations expected during 4Q19.

Initially placed in service in October 2014, Medallion’s crude oil pipeline has undertaken a series of expansions to meet the increasing needs of producers and marketers in the Midland Basin. The existing system is a network of approximately 700 miles of 6 in. and larger crude oil pipeline facilities that aggregate and transport crude oil production to the Colorado City Hub, the Crane Hub and the Midland Hub, providing access to multiple long-haul, large-volume pipelines for transportation to downstream markets.

Open season process

The open season began 16 July 2018 and ends at 4.00 pm CDT Wednesday 15 August 2018. All bids and expressions of interest regarding the relinquishment of capacity 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 proposed Federal Energy Regulatory Commission and Texas Railroad Commission tariffs by contacting the representative. Prospective shippers and existing firm shippers must execute a confidentiality agreement prior to delivery of these documents. More information concerning the expansion can be found in the open season notice available on the Medallion website.

Read the article online at: https://www.worldpipelines.com/business-news/17072018/medallion-plans-major-expansion-of-crude-oil-pipeline/

 

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US pipeline news Crude oil pipeline news