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Medallion Sees ‘Compelling Interest’ for Permian Midland Oil Pipeline Capacity

Medallion Pipeline Co. LLC has long-term commitments in hand to expand six segments of a Permian Basin oil pipeline system that runs through the Midland sub-basin, and is gauging interest in additional capacity because of “compelling interest,” CEO Randy Lentz said.

The pipeline operator secured binding agreements for the West Texas system to construct a 16-inch operational loop of the existing Midkiff Lateral and expand capacity of the Crane Extension, Reagan Gathering Extension, Santa Rita Lateral, Martin Lateral and Midland Lateral segments.

The expansion is to be done in phases, with full service anticipated in late 2019.

“The continued interest of potential shippers in increased pipeline capacity in the Midland Basin is compelling,” said Lentz. “We are excited about the significant production growth in the region and the opportunity to meet the growing demand for pipeline capacity.”

Given the interest in securing capacity, Medallion has launched a one-week supplemental open season through Wednesday (Aug. 22).

Initially placed in service in October 2014, Medallion’s crude oil pipeline has undertaken a series of expansions in the Midland. A two-part expansion was undertaken last year to double capacity of the Wolfcamp Connector to 200,000 b/d from 105,000 b/d. The 47-mile expansion runs from the existing Howard-Wolfcamp Interconnect to the Colorado City Hub. The second part of the expansion increased capacity on the existing Howard Lateral, with throughput increased to 85,000 b/d from 60,000 b/d.

Contact Medallion for more information on the supplemental system, or call Paige Snider at (972) 746-4401.

 

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