Magellan Midstream to Boost Loading capacity at Cheyenne Terminal

NEW YORK (Reuters) - Magellan Midstream Partners said it will invest $4.65 million to increase truck loading capacity at its refined oil products terminal in Cheyenne, Wyo., by more than 50%.

Magellan said the volume of gasoline, ethanol blends and diesel fuel loaded at its Cheyenne terminal increased during the third quarter this year. A company spokesman declined to provide the capacity of the terminal.

Magellan's facility includes about 300,000 barrels of storage for ultra-low sulfur diesel, gasoline and ethanol, with two loading bays. It receives refined products via a Magellan pipeline that originates in Casper, Wyoming.

The coronavirus pandemic has decreased demand for traditional fuels like gasoline and diesel and in some instances has accelerated refiners’ plans to increase investments in renewable fuels.

Magellan's expansion comes after HollyFrontier Corp began decommissioning its 52,000 bpd Cheyenne refinery in the third quarter to convert it to produce renewable diesel. It was one of a handful of refiners earlier this year to announce a move toward renewable diesel, made from feedstock such as used cooking oil from fast-food restaurants.

 

 

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