Medallion Pipeline Company has announced 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.


Image: Medallion proposes to expand six pipeline segments. Photo courtesy of Alexander Redmon/

Through the open season, Medallion proposes to expand six pipeline segments to transport increased quantities of crude oil, produced from acreage proximate to Medallion’s system, to downstream pipelines and markets. The open season begins today, July 16, 2018 and ends Wednesday, August 15, 2018 at 4:00 p.m. CDT.

To address the growing need for pipeline capacity in the region, Medallion plans to construct a 16-inch 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 (Expansion Segments).

The open season provides an opportunity for interested shippers to acquire long-term firm capacity under binding Transportation Services Agreements, as a committed firm shipper on one or more of the Expansion Segments. Prospective shippers are provided with two commitment tiers subject to a minimum five-year commitment.

Additionally, existing firm shippers will be provided the option to amend their existing Transportation Services Agreements, as set forth in the open season notice, to 1) adjust committed volumes or 2) obtain the lower expansion rates offered on the applicable Expansion Segments in return for an extension of the primary term of the Transportation Services Agreement. The expansion project is expected to commence commercial operations in phases, with full commercial operations expected during the fourth quarter of 2019.

Initially placed in service in October 2014, Medallion’s crude oil pipeline has undertaken a series of expansions to meet the increasing needs of producers and marketers in the Midland Basin. The existing system is a network of approximately 700 miles of 6-inch and larger crude oil pipeline facilities that aggregate and transport crude oil production to the Colorado City Hub, the Crane Hub and the Midland Hub, providing access to multiple long-haul, large-volume pipelines for transportation to downstream markets.

Source: Company Press Release