Magellan Midstream Partners, L.P. and Buckeye Partners, L.P. announced Tuesday they have begun a joint assessment to determine the feasibility of constructing a dedicated ethanol pipeline. The proposed ethanol pipeline system would safely and efficiently deliver renewable fuel ethanol from the
The feasibility of this project is dependent upon the successful outcome of ongoing studies addressing technical and economic issues associated with the transportation of ethanol via pipeline, stated the companies. Congressional support and assistance is necessary for a project of this nature given the changing federal policies associated with renewable fuels. In addition to assessing governmental support, financing and technical issues, Magellan and Buckeye stated that the feasibility study would also review construction requirements, construction costs, project economics, regulatory issues and other matters. The technical and feasibility studies could be complete in the latter half of 2008.