Magellan to Transition Dubuque Terminal to Pre-Blended X-Grade

Magellan Midstream Partners, L.P. has announced a pilot project at their Dubuque, Iowa terminal where all X-grade diesel fuel will now be blended with biodiesel. In a release from Magellan dated September 1, 2021, Magellan states their intention to evaluate the movement of biodiesel blended product through their pipeline transportation system.  The pilot project at their Dubuque terminal appears to be the first step in Magellan’s evaluation process. The full release from Magellan can viewed below. 

The introduction of biodiesel blended product at the Dubuque terminal is slated to begin as early as October 1, 2021. In their release, Magellan indicates the pilot project will run for a period of 2 to 3 months and for convenience and transparency to its customers, Magellan intends to list the concentration of biodiesel blended product lifted from their Dubuque terminal on all Bills of Lading.

FUELIowa members lifting X-grade fuel product from the Dubuque terminal are reminded that Iowa’s biodiesel-related income tax credits are tied to the retail sale of biodiesel blended products to end-users. FUELIowa does not anticipate Magellan’s pilot project in Dubuque to impact a members eligibility to apply for the income tax credits associated with B5 and B11.

Members with questions about the Magellan pilot project may contact John Maynes in the FUELIowa office (515-421-4043; john@fueliowa.com).