Medallion Pipeline Company, LLC closed a successful binding open season for its proposed crude oil pipeline, the Wolfcamp Connector, as well as for the southward extension of the proposed Reagan Gathering Extension.
Based on the binding capacity bids received from prospective shippers during the open season, Medallion has executed long-term Transportation Service Agreements, which, in the aggregate, provide more than sufficient capacity commitments to move forward with the construction of both the Wolfcamp Connector and the Reagan Gathering Extension on a schedule that is expected to place both pipelines in-service by the fourth quarter.
Medallion’s combined crude oil gathering system will extend 112 miles through the Midland Basin and will initially be capable of receiving and transporting up to 65,000 bpd of crude for delivery to take away pipelines at the Colorado City hub accessing both Cushing and Gulf Coast markets via existing and new major crude oil take away pipelines, including the proposed BridgeTex Pipeline. With the installation of midpoint pump stations the Wolfcamp Connector is expandable to about 100,000 bpd capacity.
“The Wolfcamp Connector represents the next step in Medallion’s previously announced plan to provide fully integrated services to our customers in the fast growing Midland Basin,” said Randy Lentz, CEO of Medallion.