Open Season Launched for Pipeline Construction Project
Medallion Delaware Express, LLC and Medallion Pipeline Company, LLC have launched an open season to solicit binding, long-term commitments on the Delaware Express crude oil pipeline system in the Delaware Basin in West Texas along with a new Joint Tariff transportation service, which will deliver crude oil produced in the Delaware Basin to multiple market centers and long-haul pipelines connected to Medallion’s system.
Through this binding open season, Medallion Delaware Express and Medallion expect to make up to 200,000 barrels per day available for Joint Tariff service, with up to 180,000 bpd available to committed shippers at volume incentive rates under long-term transportation agreements, providing for either acreage dedications or volume commitments.
To accomodate the Joint Tariff service, Medallion is also soliciting requests from existing shippers with effective transportation services agreements to temporarily or permanently turn back a portion of their capacity. This would potentially defer or reduce the facilities initially required to be constructed.
The Delaware Express pipeline system is a new crude oil gathering and transportation system in Ward, Pecos, Reeves and Crane counties that will connect southern Delaware Basin crude oil to downstream pipelines. Subject to the outcome of this open season, Medallion’s Delaware Express pipeline system will consist of a 30-mile gathering system and a 63-mile, 16-inch mainline pipeline with an initial capacity of 90,000 bpd, originating in Ward County and extending east to an interconnection with the Medallion Pipeline in Crane County.
Medallion will initially provide the Joint Tariff service through an expansion of its system to be effectuated through the addition of pumping facilities and additional temporary capacity. Future capacity additions may be achieved by the addition of new or increased pumping station horsepower, drag reducing agents, the looping of pipeline segments of the Joint Tariff route, and/or capacity turnback.
The open season commenced today, October 18, 2017, and concludes at 5:00 pm CDT on November 15, 2017. For more information, visit www.medallionmidstream.com.
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