Iowa Renewable Fuels Association Pipeline & Terminal 101

Transcription

1 Iowa Renewable Fuels Association Pipeline & Terminal 101 Tom Byers August 16, 2012 Des Moines, IA 1

2 Today s Overview Magellan s background From the refinery to the terminal Refined Products sequencing Transmix Additives Hub & Spoke system Renewable Fuels Blending Services / Overview Pipeline safety tools pigs Operations Control Center Driver access, product options & loading procedures Safety while visiting our Des Moines terminal T E R M I N A L T O U R 2

3 Key Petroleum Infrastructure 3

4 Background - Petroleum Pipeline System Refined Petroleum Products Longest refined petroleum products pipeline in the U.S. at 9,600 miles with 50 Magellan-owned terminals Demand-driven system with multiple supply options, including direct connectivity to 13 refineries Access to more than 40% of refinery capacity in the continental U.S., including Gulf Coast and Chicago refinery complexes Magellan s competitive position: Breadth of system Independent service provider model 4

5 From the Refinery to the Terminal Our pipelines are carbon steel and vary in diameter Generally 3 to 5 feet below ground Pumping stations push products to markets Products travel about as fast as walking Average transit time from the Gulf Coast to Des Moines is days Breakout tank farms Trunk line vs. lateral line Mainline Mainline Terminal Tanks Truck Loading Rack 5

6 Product Sequencing & Additives Magellan operates multi products pipelines Transmix is created when gasoline comes into contact with distillates Fractionation units separate products Blending back into pipeline stream Gravity detectors Flow improver (Drag Reducing Agent) Gasoline & diesel additives injected at the rack IVD, cold flow improver, etc Butane blending for RVP trimming Register and report as refiner to EPA 6

7 Multi Products Pipeline System 7

8 Hub & Spoke / Terminal Allocation Structure Allocation at a Primary Terminal location will be based on the loading history at all of the terminals in that market area (boxes above) rather than solely on the loading history at the Primary Terminal 8

9 Renewable Fuels Des Moines was the first terminal in the Magellan system to provide ethanol storage and blending services Rail and truck offloading We are not transporting ethanol or ethanol blends via pipeline Offer E10 and Ethanol Flex Fuels Biodiesel storage and blending infrastructure under construction 5,000 bbl heated tank, ratio blending system 9

10 RFS Options E15 Lack of 1psi waiver during the summer months Creates the need for a special base gasoline Additional storage and other terminal infrastructure necessary to accommodate a new grade of gasoline 10

11 RFS Options - Ethanol Flex Fuel / E85 11

12 Magellan s Current View - Renewable Fuels and Pipelines Ethanol and Ethanol-Blended Gasoline Biodiesel and biodiesel blends Renewable diesel 12

13 Pipeline Safety Operations Control Call 811 Before you Dig US Department of Transportation (Pipeline Hazardous Materials Safety Administration) Smart Pigs Cathodic protection Magellan s Pipeline Control Room Constantly monitoring pipeline operations 13

14 Customer Options House Recipes and Custom Blends Quickly and Safely Loading transports Product Transfer Document Information 14

15 QUESTIONS? TERMINAL TOUR Steve Steward