Medallion Pipeline Company LLC, a subsidiary of Medallion Midstream LLC, has launched a binding open season to solicit long-term firm shipper commitments for a major expansion of its crude oil pipeline system in the Midland Basin. The project will include two parts: the Wolfcamp Expansion, which will nearly double the capacity of Medallion's existing Wolfcamp Connector mainline, and the Howard Expansion, which will increase the capacity of the existing Howard Lateral.
The Wolfcamp Expansion includes a 16-inch partial loop of the Wolfcamp Connector mainline in Howard, Glasscock, Mitchell and Scurry counties in Texas. The Wolfcamp Expansion will begin at the existing Howard-Wolfcamp Interconnect and extend 47 miles to the Colorado City hub where Medallion interconnects with several third-party carriers. This expansion will increase existing capacity on the Wolfcamp Connector mainline from 105,000 bpd to 200,000 bpd and provide firm shippers on the Wolfcamp Connector with multiple options for the receipt and delivery of crude oil.
The Howard Lateral Expansion will increase the existing 60,000 bpd capacity of the Howard Lateral to 85,000 bpd through the addition of pumping horsepower. Because of the bidirectional capabilities of the Howard Lateral, firm shippers on the Howard Expansion will have the flexibility to transport crude oil on several transportation paths. The overall expansion project is expected to start partial commercial operations in the third quarter and full commercial operations in the fourth quarter of 2017.