Medallion Starts Open Season for Midland Crude System, Joint Tariff Service
HOUSTON (P&GJ) - Medallion today launched a binding open season to solicit binding, long-term commitments to support a new crude oil gathering system in the Midland Basin and a new joint tariff transportation service by Medallion Midland Gathering (MMG) and Medallion Pipeline.
Through the Joint Tariff Service, shippers will receive an integrated transportation service for the transportation of crude oil produced in the Midland Basin to multiple market centers and long-haul pipelines connected to the Medallion pipeline system. Prospective shippers will have the opportunity to participate in the open season and make binding commitments to both MMG and Medallion under either acreage dedication or volume commitment transportation agreements, the company said.
The MMG pipeline system will be a new crude oil gathering and transportation system in Glasscock, Howard, Martin, Midland, Reagan and Upton counties of Texas to connect new crude oil production to Medallion and downstream markets. Subject to the outcome of this open season, MMG will construct numerous pipeline segments extending to individual central tank batteries. The MMG system will be extended over time to connect to additional production and expanded as production from the dedicated acreage increases.
The existing Medallion pipeline is a network of approximately 800 miles of 6-inch and larger crude oil pipeline in the Midland Basin. The Medallion system consists of eight pipeline segments providing diversified market access to seven downstream pipelines which interconnect with the Medallion system at three major market hubs.
Through the Joint Tariff Service, Medallion will receive crude oil delivered from MMG at the interconnections between MMG and Medallion for delivery to Medallion’s Crane Hub, Midland Hub, Colorado City Hub and the Alon USA Big Spring refinery. To provide the Joint Tariff Service, Medallion will initially construct extensions of its Howard and Santa Rita laterals and interconnections with MMG. Capacity additions over the term of the Transportation Services Agreements to meet Medallion’s contractual obligation may be achieved by the addition of new or increased pumping station horsepower, drag reducing agents, additional interconnects, and the looping of pipeline segments along the Joint Tariff route.
The open season began today and ends at 4:00 p.m. CDT on Friday, August 2. More information concerning the expansion can be found in the open season notice available at www.medallionmidstream.com.
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