Medallion Pipeline has closed its binding open season for a major expansion of its existing crude oil pipeline system in the Midland Basin in the US.
Image: Pipelines. Photo: courtesy of outgunned21/FreeImages.com
As previously announced, Medallion will expand six segments of its pipeline system to transport increased quantities of crude oil, produced from acreage proximate to Medallion’s system, to downstream pipelines and markets.
Based on the capacity bids received during the open season, Medallion has received long-term binding commitments sufficient to move forward with the construction of the Expansion.
The Expansion is expected to commence commercial operations in phases, with full commercial operations occurring during the fourth quarter of 2019.
Medallion CEO Randy Lentz said: “The continued interest of potential shippers in increased pipeline capacity in the Midland Basin, is compelling.
“We are excited about the significant production growth in the region and the opportunity to meet the growing demand for pipeline capacity.”
Because of the interest expressed by potential shippers during the open season, and based on ongoing discussions with potential shippers, Medallion is conducting a supplemental open season to solicit additional binding long-term commitments for expanded capacity.
The supplemental open season is subject to the same terms and conditions as originally proposed in the open season.
The supplemental open season maintains the same transportation options, the same origin and destination points, the same rates and provides the same options for existing committed shippers as proposed in the open season.
The supplemental open season will open on August 16, 2018, and will close as of 4 PM CDT on August 22, 2018.
All bids must be submitted to Medallion during the supplemental open season. Bona fide prospective shippers may obtain copies of the Transportation Services Agreement, as well as the proposed Federal Energy Regulatory Commission and Texas Railroad Commission tariffs by contacting the Medallion representative listed below.
Medallion requires a prospective shipper to execute a Confidentiality Agreement prior to delivery of these documents.
Source: Company Press Release