Poet, Magellan To Study Ethanol Pipeline

The companies said the project is dependent upon the success of studies addressing technical and economic issues related to transporting ethanol through a pipeline. Federal legislation revising the U.S. Department of Energy's loan guarantee program is also critical for the project to move forward, they said.

A positive assessment would allow one or both partners to enter into an agreement to construct an ethanol pipeline, but any project would take several years to complete.

Shares of Magellan Midstream Partners rose $1.26, or 4.3 percent, to $30.70 in afternoon trading. The stock has ranged from $18.85 to $43.61 over the past year.