Grainnet

by Myke Feinman, BioFuels Journal Editor

Two petroleum transporters—Magellan Midstream Partners, L.P., Tulsa, OK, and Buckeye Partners, L.P., Breinigsville, PA—announced Feb. 19 they are conducting a feasibility study for a proposed 1,700-mile dedicated ethanol pipeline from southern Minnesota/Iowa to New York harbor.

Ethanol Pipeline Facts and Figures

• Five aggregation terminals—three in Iowa, one in Indiana and one in Ohio.

• The proposed ethanol pipeline system would provide direct connection to a number of ethanol plants.

• Buckeye Partners owns existing right-of-way from central Indiana to New York.

• The remaining portion of the proposed pipeline requires obtaining right-of-way.

• Estimated cost: $3 billion.

• Would move up to 300,000 barrels of ethanol per day, or up to 4.5 billion gallons per year.

• Magellan and Buckeye are seeking a federal loan guarantee.

• Privately-funded feasibility and engineering study to be completed this year.

According to Bruce Heine, director of government and media affairs for Magellan, the three key factors to make this project happen are a federal loan guarantee, a favorable result from the feasibility study, and a solution to pipeline stress, corrosion and cracking (SCC) when transporting ethanol. If those three factors are resolved, it would take 12 to 18 months to construct the pipeline.

The Association of Oil Pipelines is currently a study to determine how to eliminate SCC when transporting ethanol via pipeline.

About the Companies:

Magellan Midstream Partners, LP

• A transporter of refined petroleum based in Tulsa, OK since 2001.

• Already blends ethanol at 36 of its petroleum product terminals.

• Is currently investing in six new ethanol blending systems at its terminals in the Midwest and Southeast.

• Since going public in 2001, Magellan has acquired close to $2 billion in strategic assets including more than 80 petroleum products terminals, an 8,500-mile petroleum products pipeline system and an 1,100-mile ammonia pipeline system.

Buckeye Partners LP

• Founded in March 1886 as part of Standard Oil Company, Buckeye is a transporter of refined petroleum based in Breinigsville, PA.

• Currently has 24 terminals with ethanol blending capabilities and is in the process of investing in two new ethanol blending systems at its terminals in the Northeast.

• Buckeye owns one of the largest independent refined petroleum products pipeline systems in the United States, with approximately 5,400 miles of pipeline. • The Partnership also owns more than 60 refined petroleum products terminals with an aggregate storage capacity of approximately 21 million barrels in Illinois, Indiana, Massachusetts, Michigan, Missouri, New York, Ohio, Pennsylvania, and Wisconsin.

• Buckeye also operates and maintains approximately 2,700 miles of pipeline under agreements with major oil and chemical companies.

For more information, call 918-645-8989.

Source: Bruce Heine, director of government and media affairs for Megellan

See Related Websites/Articles:

• Map of Proposed Ethanol Pipeline

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