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    Magellan Expands Distribution Facilities in Midatlantic

    As a result, fuel for Wawa's gas locations may come from the Port of Wilmington.

    TULSA, Okla. -- Magellan Midstream Partners LP, a petroleum distributor based here, is expanding its facilities at the Port of Wilmington in Delaware, with plans to store and distribute gasoline and ethanol fuel for Wawa convenience stores by the end of this year or early 2009, the Delaware News Journal reported.

    The company is "maintaining our existing business while expanding into the new business," Robb Barnes, Magellan's vice president for Terminals, told attendees at the Port of Wilmington Marine Society's winter luncheon last week, according to the paper.

    Magellan transports, stores and distributes refined petroleum products in 22 states via an 8,500-mile pipeline system, 27 land terminals and seven marine terminals, the report stated.

    "We do not own any of the products in our tanks," Barnes told the paper. "We're a logistics company. We move it."

    At the Delaware port, the company currently stores heating oil and oil for industrial boiler fuel in a 1.8 million-barrel facility, according to the report. Magellan plans to spend $65 million in Delaware during the next year to construct 11 new tanks, expand its piping network from the dock and update its truck-filling station to carry ethanol and gasoline, the report stated.

    The expansion would increase the storage capacity at the Port of Wilmington by approximately 1 million barrels, or about 175,000 barrels of ethanol and 825,000 barrels for gas, the report stated.

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