Medallion Delaware Express and Medallion Pipeline said Friday they are conducting a binding open season to support an expansion of the Delaware Express and Medallion pipeline systems for an expanded joint tariff service.
Through the joint tariff service, shippers receive transportation of crude oil produced in the Delaware Basin to multiple market centers and long-haul pipelines connected to the Medallion pipeline system, Kallanish Energy reports.
Prospective shippers will have the opportunity to participate in the open season and make binding commitments to both Delaware Express and Medallion for the expanded joint tariff service under either acreage dedication or volume commitment transportation agreements, at volume incentive rates.
The existing Delaware Express pipeline system aggregates crude on two gathering systems in Reeves, Pecos and Ward counties in the southern Delaware Basin, and transports the crude oil on a 61-mile, 16-inch mainline to interconnections with downstream pipelines, including Medallion.
Delaware Express also accepts crude oil delivered by truck at its Independence Station and Eagle Eye Station on the Delaware Express mainline. An affiliate of Delaware Express owns storage tank and truck unloading facilities at the Independence Station and the Eagle Eye Station.
The existing Medallion pipeline is a network of roughly 800 miles of 6-inch and larger crude oil line in the Midland Basin.
Through the joint tariff service, Medallion receives crude oil from Delaware Express at the interconnection between Delaware Express and Medallion near Medallion’s Crane Hub. Medallion delivers crude oil transported under the joint tariff to the Crane Hub, the Midland Hub and the Colorado City Hub, which provide access to multiple large-volume pipelines that serve various downstream markets.
Subject to the outcome of this open season, Delaware Express and Medallion will expand their systems to provide additional joint tariff service. Delaware Express will construct new gathering facilities to connect crude oil production in Reeves County and Medallion and Delaware Express will expand their mainline systems to transport the new production.
The Delaware Express and Medallion mainline capacity for joint tariff transportation will be expanded over time as crude oil production from the new dedicated acreage increases.
The open season began April 12, and ends on May 10.
This post appeared first on Kallanish Energy News.