Medallion Pipeline Co. LLC is testing support through mid August for a major upgrade to its crude oil pipeline system in the Permian Basin, which could result in expanding six segments.
The binding open season through Aug. 15 would gauge interest in expanding the pipeline that runs through the Midland sub-basin.
“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),” management said.
Existing firm shippers on the Medallion system would have the option to amend existing agreements to adjust committed volumes or obtain lower expansion rates offered on the expansion segments.
With enough support, Medallion said the expansion project would ramp up commercial operations in phases, with full service anticipated in late 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 portion of the Permian.
A two-part expansion of Medallion’s West Texas system was undertaken last year to double capacity of the Wolfcamp Connector to 200,000 b/d from 105,000 b/d. The expansion ran 47 miles from the existing Howard-Wolfcamp Interconnect to the Colorado City Hub. The second part of the expansion increased capacity on the existing Howard Lateral, adding pumping horsepower to increase throughput to 85,000 b/d from 60,000 b/d.
The existing system is a network of about 700 miles of six-inch and larger diameter pipeline facilities that aggregate and transport crude oil production to the Colorado City, Crane and Midland hubs in West Texas.
More information about the expansion and the binding open season is available on the Medallion website. The Irving, TX-based operator is a portfolio company of The Energy & Minerals Group.