Tennessee Unveils New Fuel Terminal

The U.S. fuel distribution network will soon increase its storage capacity thanks to a new Tennessee terminal. This week a BP and Buckeye partnership opened its fuel terminal in the heart of Tennessee, less than two hours from Memphis and less than an hour from Nashville. The $60 million facility will have the capacity for roughly 100 truckloads per day of diesel and gasoline of all grades.

The Tennessee supply point should benefit both rack gasoline and diesel loadings in the surrounding markets, which have previously experienced tightness. Traditional Nashville supply comes from Gulf Coast refiners via the Colonial Pipeline, with some ability for terminals to accept fuel via barges along the Cumberland River. The new facility will be fed by Chicago refiners some 400 miles away, who process cheaper Canadian crude. OPIS noted recently that Chicago fuel prices are around 4 cents cheaper for gasoline and 13 cents cheaper for diesel compared to Gulf Coast prices.

Over the last few years, gasoline demand in Tennessee has increased dramatically. Nashville is one of the most flourishing metropolitan areas in the U.S. The Tennessee market is expected to see even more growth from major retailers as they continue their expansion plans across the state.

At the ribbon-cutting ceremony, both BP and Buckeye leadership commented on several items worth sharing:

  • The vision of this project started over 10 years ago
  • There were zero injuries during the construction, which at its highest peak had over 400 individuals on-site.
  • Construction of this facility used over 70% local Tennessee labor.

Like many new fuel projects, the terminal faced “NIMBY” (Not in My BackYard) objections from locals, who highlighted concerns of increased traffic and potential safety issues. Similar challenges have blocked construction projections of terminals, pipelines, and refiners in the past. For example, the US has not built a large refinery since 1977, despite significantly higher fuel demand over the past 45 years. This new fuel terminal is a win for the fuel industry and will help lower fuel costs and supply risk in a growing market.

Market Condition Report - Disclaimer
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

Sign up for FUELSNews for daily market information and insights
Sign Me Up
Give Us a Call Today

We are happy to discuss your business challenges over the phone and answer any questions.

800.695.6626

Send Us an Email

Ask your toughest questions. We'll get back to you with the best answer humanly possible.

Send Email

Find a Mansfield Location

Need to contact a specfic office? View contact information for offices across the country.

View Locations

Get a Quote Today

Let us know what type of fuel or service you need and a team member will get a quote to you quickly.

Get a Quote