Medallion Pipeline Company, a subsidiary of Medallion Midstream, kicked off a binding open season for long-term commitments on firm transportation capacity on the Santa Rita Expansion and the Howard Expansion, collectively referred to as the Expansion Project. The project consists of two new crude oil pipeline projects to expand and extend the geographic reach of the existing Medallion Pipeline system.
The expansion consists of a proposed 18.4-mile pipeline, with a capacity of 20,000 bpd, and extends northward from the Medallion’s existing Santa Rita Lateral in Reagan County, TX to an interconnection on the company’s existing Midkiff Lateral in Glasscock County. Medallion proposed expanding capacity of the Santa Rita Lateral by 20,000 bpd and reconfiguring the system for bi-directional capabilities. This would allow deliveries to either the Reagan Station Interconnect with the Reagan Gathering Extension or to the Santa Rita-Midkiff Interconnect.
The expansion consists of a proposed 15,000 bpd expansion of Medallion’s existing Howard Lateral and a new pipeline extending about15 miles from the existing Howard Lateral to the northwest quarter of Howard County near the Martin, Dawson and Borden County lines.
The open season, which ends at 5 p.m. Feb. 8, calls for a minimum 10-year term, with commercial operations to begin in the second quarter of 2017.