Magellan Midstream Partners LP said on Dec. 2 it will invest about $4.65 million to increase truck loading capacity at its refined oil products terminal in Cheyenne, Wyo., by more than 50%.
The move comes after HollyFrontier Corp. began decommissioning its 52,000 bbl/d 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.
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, Wyo.
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.
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