Medallion Pipeline Co. LLC, Irving, Tex., has launched 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.
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 (OGJ Online, Feb. 26, 2016, Mar. 30, 2016). Expansion is expected to begin commercial operations in phases, with full commercial operations expected during fourth-quarter 2019.
Interested shippers can acquire long-term firm capacity under binding transportation services agreements, as a committed firm shipper on one or more of the expansion segments, the company said. Prospective shippers are provided with two commitment tiers subject to a minimum 5-year commitment. Existing firm shippers have the option to amend existing agreements to adjust committed volumes or obtain the lower expansion rates offered on the applicable expansion segments in return for an extension of the primary term of the agreement.
Initially placed in service in October 2014, Medallion’s existing system is a network of 700 miles of 6-in. and larger crude oil line facilities that aggregate and transport crude oil to the Colorado City, Crane, and Midland hubs.
The open season ends Aug. 15.