Medallion Announces Binding Open Season For New Delaware Basin Crude Oil Pipeline, Joint Tariff Service and Solicitation of Capacity Turnback

October 18, 2017
Medallion

Irving, Texas – October 18, 2017 -- Medallion Delaware Express, LLC (Delaware Express) and Medallion Pipeline Company, LLC (Medallion) are conducting an open season to solicit binding, long-term commitments to support a new crude oil pipeline system in the Delaware Basin in west Texas, and a new joint transportation service to be provided by Delaware Express and Medallion.  Through this binding open season, Delaware Express and Medallion expect to make up to 200,000 barrels per day (bpd) available for Joint Tariff service, with up to 180,000 bpd available to committed shippers at volume incentive rates under long-term transportation agreements (Transportation Services Agreements), providing for either acreage dedications or volume commitments.  The proposed Joint Tariff service will provide a critical link between new crude oil production in the prolific Delaware Basin and multiple market centers and long-haul pipelines connected to Medallion’s system. 

 

About the Delaware Express Pipeline

 

The Delaware Express pipeline system will be a new crude oil gathering and transportation system in Ward, Pecos, Reeves and Crane counties to connect southern Delaware Basin crude oil to downstream pipelines, including Medallion.  Subject to the outcome of this open season, Delaware Express will initially construct a 30-mile gathering system and a 63-mile, 16-inch mainline pipeline with an initial capacity of 90,000 bpd, originating in Ward County and extending east to an interconnection with Medallion in Crane County. Depending on the level of capacity subscriptions awarded through the open season, the gathering system and mainline will expand over time through the addition of field lines, gathering lines, pumping station horsepower, drag reducing agents, and/or the looping of all or some portion of the mainline to meet Delaware Express’ contractual obligations under the Transportation Services Agreements and to connect the acreage dedicated through the open season process. 

 

About Medallion Pipeline

 

The existing Medallion pipeline is a network of approximately 600 miles of 6-inch and larger crude oil pipeline located in Martin, Howard, Mitchell, Midland, Glasscock, Crane, Upton, Reagan and Scurry counties in the Midland Basin.  Initially placed in service in October 2014, Medallion has undertaken a series of expansions to meet the increasing needs of producers and marketers in the region.  Through the Joint Tariff service, Medallion will receive crude oil from Delaware Express at the interconnection between Delaware Express and Medallion near Medallion’s Crane Hub.  Medallion will deliver crude oil transported under the Joint Tariff at multiple hubs that interconnect with long-haul, large-volume pipeline systems for transportation to downstream refinery markets.  

 

Medallion will initially provide the Joint Tariff service through an expansion of its system to be effectuated through the addition of pumping facilities and possibly capacity temporarily or permanently released from existing shippers, as explained below.  Capacity additions over the term of the Transportation Services Agreements to meet Medallion’s contractual obligations may be achieved by the addition of new or increased pumping station horsepower, drag reducing agents, the looping of pipeline segments of the Joint Tariff route, and/or capacity turnback, if any.

 

Medallion Solicitation of Turnback Capacity

Medallion is soliciting requests from existing shippers with effective transportation services agreements along the Joint Tariff route to temporarily or permanently turn back a portion of their capacity. This would potentially defer or reduce the facilities initially required to be constructed by Medallion to provide the Joint Tariff service.  The solicitation of turnback capacity is not binding on Medallion, and the turnback of capacity will be determined by Medallion at its sole discretion.  Qualified shippers that are interested in potentially turning back capacity must participate in the open season for that purpose.

 

Open Season Process

 

The open season begins today, October 18, 2017 and ends at 5:00 pm CDT on November 15, 2017.  All bids for the Joint Tariff service and expressions of interest regarding the potential turnback of capacity must be submitted during the open season.  Bona fide prospective shippers may obtain copies of the Transportation Services Agreements, as well as the proposed Federal Energy Regulatory Commission and Texas Railroad Commission Joint Tariffs by contacting the representative listed below.  Prospective shippers must execute a confidentiality agreement prior to delivery of these documents.  More information concerning the Joint Tariff service and the binding open season is available on the Medallion website at www.medallionmidstream.com.  Interested shippers may contact the representative listed below for further information.

 

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About Medallion Midstream, LLC

Medallion Midstream is an Irving, Texas based full services midstream provider specializing in the design, construction and operation of natural gas and crude oil infrastructure. Medallion delivers responsive, reliable and comprehensive services and solutions for its customers. Medallion is a portfolio company of The Energy & Minerals Group. To learn more about Medallion, please visit www.medallionmidstream.com.

 

About The Energy & Minerals Group

The Energy & Minerals Group (EMG) is the management company for a series of specialized private equity funds. The Firm was founded by John Raymond (majority owner and CEO) and John Calvert in 2006.  EMG focuses on investing across various facets of the global natural resource industry including the upstream and midstream segments of the energy complex.  EMG has approximately $16.0 billion of regulatory assets under management and approximately $10.4 billion in commitments have been allocated across the energy sector since inception.

 

 

 

 

CONTACTS

OPEN SEASON INQUIRIES

Allison Schar

Medallion Pipeline Company, LLC

Phone: 972-445-9308

Email: aschar@medallionmidstream.com 

222 West Las Colinas Blvd., Suite 1140E

Irving, Texas 75039

 

Media Inquiries

Meredith Howard

M2H Communications

Phone: 210-737-4478

Email: meredith@m2hpr.com