New York terminal begins ethanol expansion

By Luke Geiver | February 09, 2010
Posted March 15, 2010

Another ethanol infrastructure project has started, this time in Albany, N.Y. Global Partners LP (GLP) and Canadian Pacific Railway Limited (CP) will partner on an expansion and refurbishment project, adding 180,000 barrels of ethanol storage capacity and rail access at GLP's petroleum products terminal in Albany.

The $5 million project includes modifications enabling the delivery of 80-car trains of ethanol to the New York terminal. GLP will connect the terminal to CP's adjacent Kenwood Yard rail facility via pipeline. With CP's single-line haul capability from the Midwest to the Eastern seaboard, the expansion will allow GLP to distribute more ethanol to the Northeast. The Albany terminal is located along the Hudson River, which will now present an advantage as a distribution point for the Northeast, according to GLP president and CEO Eric Slifka.

GLP will be responsible for the enhancements to its terminal and the refurbishment of two petroleum tanks that will be used to store ethanol, while CP will construct a rail car unloading facility at Kenwood Yard. The push to bring ethanol produced in the Midwest to the coasts has already begun with talks of a 1,800 mile pipeline from South Dakota to New Jersey. The expansion project at the Albany site, to be completed in 2010, will help meet that demand for ethanol on the east coast, according to Slifka. "Connecting our terminal to CP's Kenwood Yard provides us with another supply option into and out of the Albany terminal," Slifka said, "thereby creating an additional revenue opportunity and further enhancing our operating efficiencies. The project diversifies our product base and enables us to meet the market's growing need for ethanol in the Northeast."