Kinder Morgan stops ethanol deliveries to Argo terminal on full storage

14.02.2017

Kinder Morgan told customers Monday that ethanol truck deliveries to its Argo, Illinois, terminal must be diverted to its nearby Stony Island storage facility amid full storage.

"Inbound truck movements were diverted in order to balance inventory between terminals because inventory at the Argo terminal is at peak levels," company spokeswoman Sara Hughes said in an email.

Trucks will start being redirected at noon CST Tuesday. The company did not say when Argo deliveries would resume.

US ethanol stocks have been rising for the past five weeks, as shown in weekly Energy Information Administration data. Inventories added 215,000 barrels to 22.085 million barrels in the week ended February 3.

Midwest stocks, the region under which Argo falls, hit an all-time high of 7.819 million barrels in the same week.

Argo is the busiest hub of physical ethanol trade in the US, so a full terminal can pressure prices.

The terminal last reached its ethanol storage capacity in March 2016, which sent prices tumbling.

S&P Global Platts assessed Argo at $1.56525/gal Monday, down 1.275 cents.


platts

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