Magellan sets deadline to raise cash for pipeline

Magellan Midstream Partners has set a deadline to arrange federal financing for a proposed $3.5bn ethanol pipeline to run 1,700 miles from the US Midwest to the East Coast by the end of this year, Recharge learns.



Fort Worth: Construction of such a large, dedicated ethanol pipeline has never been attempted in the US, partly for cost reasons, but also because of technical hurdles. Oklahoma-based Magellan, the driving force behind the project, has recently been joined by Poet, the largest US ethanol producer. Poet joined the project as a replacement for Buckeye Partners, a major operator of crude-oil pipelines and refined-petroleum- product terminals.

"Federal financing is essential for the project to go forward," Magellan representative Bruce Heine tells Recharge . He says one possibility is loan guarantees,…

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