Medallion announces successful close of binding open season

Medallion Pipeline Company, LLC, a subsidiary of Medallion Midstream LLC, has announced the successful closing of the binding open season for its proposed crude oil pipeline extension, (the Midkiff Lateral), as well as for the capacity expansion of its existing Wolfcamp Connector pipeline, (the Wolfcamp Connector Expansion). As previously announced, the binding open season for the Midkiff Lateral and the Wolfcamp Connector Expansion commenced on 6 November 2014.

Based on the binding capacity bids received from prospective shippers during the open season, Medallion has executed long-term Transportation Service Agreements which, in the aggregate, provide capacity commitments sufficient to move forward with the construction of both the Midkiff Lateral and the Wolfcamp Connector Expansion projects on a schedule that is expected to place both projects in-service during the 1Q15.

The Midkiff Lateral will extend approximately 40 miles from the new Midkiff station, in Upton County, Texas, to the existing Garden City station, and will be capable of transporting approximately 75 000 bpd of crude oil for delivery. Adjacent to the proposed Midkiff station will be truck unloading facilities that will be owned and operated by Medallion Pipeline’s affiliate, Medallion Crude Oil Logistics, to provide shippers the option to truck crude oil quantities to those facilities.

The Wolfcamp Connector Expansion will increase Medallion’s Wolfcamp Connector pipeline capacity between the Garden City station and Colorado City hub by 30 000 bbls from the current 65 000 bpd of capacity to 95 000 bpd.

“The Midkiff Lateral and the Wolfcamp Connector Expansion projects will substantially extend and expand our existing crude oil pipeline systems capacity and geographical scope,” said Randy Lentz, Chief Executive Officer of Medallion. “The successful close of this open season is a testament to our confidence and the confidence of our customers in the long-term sustainable growth of Midland Basin crude oil production.”

Adapted from press release by by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/contracts-and-tenders/18122014/medallion-announces-successful-close-of-binding-open-season/