February 03, 2011 [OPIS] - Kinder Morgan's ethanol supply hub at Argo, Ill., experienced a blizzard on Tuesday and Wednesday, but it remained operational, Joe Hollier, a company spokesman, told OPIS on Thursday.
Midwest traders said that supply offtake from Argo terminal slowed to almost a complete halt in the past two days due to difficult operating conditions and snow, and the regional distribution system is slowly returning to semi-normal on Thursday. The 2.493-million-bbl capacity Argo terminal is a major ethanol supply hub for Midwest distributors and refiners. Its ethanol capacity is 776,000 bbl.
The terminal is used for storing and distributing oil products, chemicals, ethanol and residual fuel oil. “Trucks were typically not capable of driving in the winds and snow that were present Tuesday afternoon through Wednesday afternoon,” Hollier said. Industry sources noted there are freezing issues on the canal near Argo terminal and it has very limited railcar flexibility.
However, truck traffic at the terminal should improve on Thursday, with most of the main arteries in Chicago area cleared up.