A binding open season to secure shipper commitments to support the development of a proposed extension of Explorer’s pipeline system was announced by Explorer Pipeline Company. The proposed project named as Expansion Project, when completed, shippers will be able to obtain transportation service from the U.S. Gulf Coast receipt points on Explorer’s system to the new delivery point near Melissa, Texas.
The company is also planning to construct a new terminal at the terminus of the Expansion Project near Melissa, Texas, which will be owned and operated by U.S. Oil. The binding open season started on September 10, 2019, and is scheduled to end on November 11, 2019.
According to Explorer Pipeline Company, shippers interested in becoming committed shippers on the Expansion Project must make a volume commitment of at least 2,500 barrels per day. Also shippers that make a volume commitment will have the ability to receive priority capacity, up to an amount of their volume commitments, during periods of prorationing, subject to the payment of a premium rate.
Shippers that make a volume commitment and do not receive priority capacity will be subject to discounted rates compared to the rates assessed to walk-up shippers, with the amount of the discount dependent on the level of the shipper’s volume commitment.