Permian Basin News: Medallion launches pipeline binding open season

Expansions to Medallion pipeline total 125,000 b/d

Medallion
Medallion pipeline

Medallion Pipeline Company, LLC,  today announced a binding open season to solicit long-term commitments from shippers for transportation capacity on the fourth major expansion of the Medallion crude oil pipeline system.

The current project proposed by the open season will further extend and expand the geographic scope of the 370-mile Medallion system:

  • The “Crane Extension” is a proposed 100,000 b/d bi-directional crude oil pipeline which will extend approximately 25 miles in a southwesterly direction from Medallion’s existing Midkiff Station in northwest Upton County, Texas to an interconnect with Magellan Midstream Partners’ Longhorn Pipeline in east Crane County, Texas.
  • A proposed 25,000 b/d expansion of Medallion’s existing Midkiff Lateral which extends in a northwesterly direction from the Midkiff Station to the Garden City Station in Glasscock County, Texas. As part of the Midkiff expansion, the existing Midkiff Lateral will be reconfigured for bi-directional operations.

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Medallion Pipeline, a subsidiary of Irving-based Medallion Midstream LLC, said in a press release that the open season provides an opportunity for interested shippers to acquire long-term firm capacity, under minimum 10-year term Transportation Service Agreements and other eligibility requirements, as “committed firm shippers” on the expansion project.

The company says the Medallion expansion is expected to commence full commercial operations in Q2 2016, although certain segments may commence service on an interim basis on an earlier date.

The open season begins Feb. 24 and ends 5 p.m. CT on March 16, 2016.