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Medallion conducts open season for new Delaware Basin pipeline

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World Pipelines,

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 a new crude oil pipeline system in the Delaware Basin in west Texas (USA), and a new joint transportation service to be provided by Delaware Express and Medallion.

Through this binding open season, Delaware Express and Medallion expect to make up to 200 000 bpd available for joint tariff service, with up to 180 000 bpd available to committed shippers at volume incentive rates under long-term transportation agreements (Transportation Services Agreements), providing for either acreage dedications or volume commitments.

The proposed joint tariff service will provide a critical link between new crude oil production in the prolific Delaware Basin and multiple market centers and long-haul pipelines connected to Medallion’s system.

The Delaware Express pipeline system will be a new crude oil gathering and transportation system in Ward, Pecos, Reeves and Crane counties to connect southern Delaware Basin crude oil to downstream pipelines, including Medallion. Subject to the outcome of this open season, Delaware Express will initially construct a 30 mile gathering system and a 63 mile, 16 in. mainline pipeline with an initial capacity of 90 000 bpd, originating in Ward County and extending east to an interconnection with Medallion in Crane County. Depending on the level of capacity subscriptions awarded through the open season, the gathering system and mainline will expand over time through the addition of field lines, gathering lines, pumping station horsepower, drag reducing agents and/or the looping of all or some portion of the mainline to meet Delaware Express’ contractual obligations under the Transportation Services Agreements and to connect the acreage dedicated through the open season process.

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US pipeline news Crude oil pipeline news