Medallion Launches Open Season for Midland Basin Crude Expansion
HOUSTON (P&GJ) — Medallion Pipeline Company announced a binding open season to solicit long-term, firm shipper commitments for an expansion of its crude oil pipeline system in the Midland Basin.
Medallion proposes through the open season to construct an operational loop of its existing Howard Lateral and an expansion of its Midkiff Lateral from Garden City Station to the Midkiff Station, adding crude oil delivery capacity to downstream pipelines and markets.
The existing Medallion pipeline system includes 800 miles of 6-inch and larger-diameter crude oil pipeline spanning some of the most prolific crude oil producing counties in the Permian Basin: Crane, Glasscock, Howard, Irion, Martin, Midland, Mitchell, Reagan, Scurry and Upton.
Its eight segments serve as an intra-basin header system that provides diversified market access to 10 downstream pipelines that interconnect at Medallion’s Crane, Midland and Colorado City hubs. Medallion's system also includes facilities that are smaller than 6 inches in diameter, typically to connect the system to individual tank batteries in the field.
The open season, which ends at 4 p.m. CDT on Oct. 18, is an opportunity for interested shippers to acquire long-term firm capacity under binding transportation services agreements, as a committed firm shipper on one or both expansion segments.
Medallion said existing committed firm shippers will have the option to participate in the open season to 1) amend an existing transportation services agreement for transportation on the Howard Lateral to obtain the lower expansion rates offered on the Howard expansion in return for an extension of the primary term of the existing transportation services agreement, and 2) add the Midkiff Station as a destination point to an existing transportation services agreement for committed firm transportation on the Midkiff Lateral.
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