Medallion closes binding open season for crude oil pipeline expansion

Medallion Pipeline Co. LLC

Medallion Pipeline Co. LLC, a subsidiary of Medallion Midstream LLC, has closed the binding open season for its proposed crude oil pipeline extension (the Midkiff Lateral), as well as for the capacity expansion of its existing Wolfcamp Connector pipeline (the Wolfcamp Connector Expansion). The binding open season for the Midkiff Lateral and the Wolfcamp Connector Expansion began on Nov. 6.

Based on the binding capacity bids received from prospective shippers during the open season, Medallion has executed long-term transportation service agreements, which, in the aggregate, provide capacity commitments sufficient to move forward with the construction of both the Midkiff Lateral and the Wolfcamp Connector Expansion projects on a schedule that is expected to place both projects in-service during the first quarter of 2015.

The Midkiff Lateral will extend 40 miles from the new Midkiff station, in Upton County, Texas, to the existing Garden City station, and will be capable of transporting 75,000 barrels per day of crude oil for delivery. Adjacent to the proposed Midkiff station will be truck unloading facilities that will be owned and operated by Medallion Pipeline’s affiliate, Medallion Crude Oil Logistics, to provide shippers the option to truck crude oil quantities to those facilities.

The Wolfcamp Connector Expansion will increase Medallion’s Wolfcamp Connector pipeline capacity between the Garden City station and Colorado City hub by 30,000 barrels from the current 65,000 barrels per day of capacity to 95,000 barrels per day.


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