Magellan increases ethanol handling capabilities

By Erin Voegele | January 03, 2009
Web exclusive posted Dec. 31, 2008, at 1:20 p.m. CST

Magellan Midstream Partners LP recently added ethanol blending capabilities at two Texas-based terminals, including a third truck rack lane at its terminal in Fort Worth.

According to Bruce Heine, Magellan's director of government and media affairs, the Fort Worth terminal now has 18,000 barrels of ethanol storage. In addition, the facility can receive ethanol via truck through an automated off-loading system that's open 24 hour per day. "Our West Fort Worth terminal has a state-of-the-art sequential ethanol blending system," Heine said. "Installation of the system is complete and it should be operational soon."

The company is also expanding the ethanol loading capabilities of its terminal in Frost, Texas. Heine said the facility now has 20,000 barrels of ethanol storage, and can receive ethanol via truck through an automated off-loading system that's open 24 hours per day. Like the West Fort Worth terminal, the Frost terminal will also have a state-of-the-art sequential ethanol blending system. "Installation of the system is underway and we expect it to be operational in late January," Heine said.

In addition to the expansion of ethanol handling capabilities at the two Texas terminals, Magellan is continuing to study the feasibility of constructing a dedicated ethanol pipeline with Buckeye Partners LP that would connect Midwest ethanol producers to distribution terminals in the North East.