Medallion Delaware Express LLC and Medallion Pipeline Co. LLC on Friday launched a binding open season for long-term commitments to support expanded joint tariff service of their pipeline systems in West Texas, where oil production is booming in the Permian Basin.
The announcement is the latest in a series of crude and natural gas pipeline projects and expansions as midstreamers scramble to stay ahead of producers. Medallion Pipeline late last year announced plans for various expansions and said there’s enough interest in the region for more. Through the joint tariff, shippers would receive integrated transportation services to multiple markets for oil produced in the Permian’s Delaware sub-basin.
Delaware Express currently collects crude produced on two gathering systems in Reeves, Pecos and Ward counties and moves those volumes on a 61-mile, 16-inch diameter mainline to interconnections with downstream pipelines, including Medallion. Delaware Express also accepts oil delivered by truck at its Independence Station and Eagle Eye Station on the mainline.
Medallion is a network of 800 miles of 6-inch and larger crude pipe in the Delaware’s twin Midland Basin. Medallion delivers crude oil transported under the joint tariff to the Crane Hub, the Midland Hub and the Colorado City Hub, all of which provide access to multiple large-volume pipelines that serve various markets.
Depending on the open season, the companies said they would grow their systems. Delaware Express would construct new gathering facilities and connect crude oil production in Reeves County. Both pipelines would expand their mainline systems as well. Expansions would also continue over time as production from new dedicated acreage increases.
Prospective shippers have the opportunity to participate in the open season and make binding commitments to both the Delaware Express and Medallion under either acreage dedication or volume commitment transportation agreements at incentive rates.
The open season started Friday and ends May 10 at 4 p.m. CT. Interested parties can obtain more information by contacting Paige Snider of Medallion Delaware Express at 972-746-4401 or at firstname.lastname@example.org.
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