Big pipeline player comes into ethanol

Des Moines Register
Blog post by Dan Piller • dpiller@desmoine.gannett.com • January 21, 2010

The news of a joint venture between pipeline operator Kinder Morgan of Houston and U.S. Development Group probably didn’t crack the ice in the corn belt this week but the long-term ramifications could be significant.

Kinder Morgan is one of the nation’s largest natural gas and petroleum pipeline n. U.S. Development owns and operates ethanol loading terminals.

The guts of the deal involves Kinder Morgan taking over U.S. Development ethanol rail unloading terminals at Linden, N.J., Baltimore and Dallas.

Managements of the two companies didn’t give details of how they planned to work together, beyond the usual bows to each other’s competence and history.

But the joint venture has at least the possibility of smoothing what has been one of ethanol’s biggest logistical difficulties; getting the ethanol from the Midwest where it is made to the major gasoline markets on east and west coasts and in Texas.

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