IRVING, Texas--(BUSINESS WIRE)--Medallion Pipeline Company, LLC (“Medallion”), a subsidiary of Medallion Midstream LLC, today announced the successful closing of the binding open season for its proposed crude oil pipeline extension, (the “Santa Rita Lateral”), as well as for the capacity expansion of its existing Reagan Gathering Extension pipeline, (the “Reagan Expansion”). As previously announced, the binding open season for the Santa Rita Lateral and the Reagan Expansion commenced on February 11, 2015.
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 the overall Santa Rita Lateral and the Reagan Expansion project on a schedule that is expected to place the combined project in-service during the 2nd quarter of 2015, although certain initial segments of the project may commence service on an interim basis as early as March 2015.
The Santa Rita Lateral will extend approximately 55 miles from origin points upstream of the new Santa Rita station, in Reagan County, TX, to the existing Reagan station, and will be capable of transporting approximately 65,000 barrels per day of crude oil for delivery. Adjacent to the proposed Santa Rita station will be truck unloading facilities that will be owned and operated by Medallion’s affiliate, Medallion Crude Oil Logistics, to provide shippers the option to truck crude oil quantities to those facilities for delivery to Medallion at that origin point on the Santa Rita Lateral.
The Reagan Expansion will increase Medallion’s Reagan Gathering Extension pipeline capacity between the Reagan station and Garden City station by 30,000 barrels per day, from the current 65,000 barrels per day of capacity to 95,000 barrels per day.
“The Santa Rita Lateral and Reagan Expansion projects will significantly expand and extend Medallion’s footprint in Reagan County,” said Randy Lentz, CEO of Medallion. “Combined with our system currently in service and the previously announced expansion projects that are under construction, the Santa Rita Lateral increases Medallion’s Wolfcamp Connector crude oil gathering system to over 250 miles of pipeline, gathering oil from four of the most active counties for horizontal drilling in the Midland Basin.”
More information concerning the Santa Rita Lateral, the Reagan Expansion, and the binding open season is available on the Medallion website (www.medallionmidstream.com) or by contacting the Medallion representative listed below.
Medallion Pipeline Company, LLC
222 West Las Colinas Blvd., Suite 1140E
Irving, Texas 75039
Attention: Paige Snider
About Medallion Midstream, LLC
Medallion Midstream is an Irving, Texas based full services midstream provider specializing in the construction and operation of natural gas and crude oil midstream infrastructure. Medallion delivers responsive, reliable and comprehensive services and solutions for its customers. Medallion is a portfolio company of The Energy & Minerals Group (“EMG”). To learn more about Medallion, please visit www.medallionmidstream.com.
About 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 $17.1 billion of regulatory assets under management (RAUM) and approximately $8.1 billion in commitments have been allocated across the energy sector since inception. For additional information on EMG, please visit www.emgtx.com or contact Alexandra Holzer at 713-579-5029.