Medallion launches binding open season

Medallion Pipeline Company, LLC (Medallion), a subsidiary of Medallion Midstream LLC, has announced a binding open season that solicits long-term commitments from shippers for firm transportation capacity on the second major expansion of Medallion’s existing crude oil pipeline system. With the first expansion of the system nearing completion, the current project proposed by the open season will further extend and expand the geographic scope of the existing 200 mile, 95 000 bpd system:

  • The Santa Rita Lateral is a proposed 65 000 bpd, 10 in. and 8 in. dia. crude oil pipeline which, along with smaller diameter pipeline, will extend approximately 55 miles to the southwest from Medallion's existing Reagan Station in Reagan County, Texas, to production areas in southwestern, central, and northeastern Reagan County.
  • An integral part of the overall project is a proposed 30 000 bpd (or more, depending upon shipper commitments) expansion of Medallion's existing 10 in. dia. Reagan Gathering Extension, which originates at the Reagan Station and extends approximately 55 miles north to the Garden City Station in Glasscock County, Texas (Reagan Expansion).

Medallion is conducting the binding open season to obtain long-term volume commitments for firm transportation capacity on the Santa Rita Lateral and Reagan Expansion (referred to as the Expansion Project). 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 a Committed Firm Shipper on the Expansion Project. The Expansion Project is expected to commence full commercial operations in 2Q15, although certain initial segments of the proposed project may commence service on an interim basis as early as 1 March, 2015.

Open season process

The Open Season began on 11 February, 2015, and ends on 4 March , 2015. All bids must be submitted to the Medallion representative listed below by 5:00 pm central standard time on or before 4 March, 2015.

Adapted from press release by Hannah Priestley-Eaton

Published on 12/02/2015

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