CHS, a US-based, farmer-owned cooperative and a global
energy, grains and foods company, said Friday that it is
investing an additional $20 million in 2014 to strengthen
refined fuels supply dependability and flexibility for its
The projects include the final phase of an ongoing
replacement of the company's refined fuels pipeline between
Billings and Glendive, Montana, and a new pipeline connection
at Council Bluffs, Iowa.
"These 2014 projects bring to more than $55 million the CHS
investment over the past three years in our north central
U.S. supply and distribution infrastructure to help our
owners capture growth in diesel and other refined fuels,"
said Jay Debertin, chief operating officer for the company's
energy and foods business.
"The projects we've completed already have contributed
to strong Cenex-branded fuel growth for our
customers in the northern tier region," he added.
Debertin said the pipeline replacement project
not only supports its
, but also includes
improvements to existing pumping stations. These will boost
delivery capacity and enable CHS "to better adapt to the
operational and market challenges that are inevitable in our
business," he said.
The recently completed Council Bluffs project
connects the National
pipeline system, which runs between McPherson, Kansas, and
Council Bluffs, Iowa; to the NuStar pipeline which serves
much of eastern South Dakota and southeastern North
Debertin said the connection also improves CHS' ability to
utilize NuStar terminals in Jamestown, North Dakota, and
Aberdeen, South Dakota, thus allowing the company to better
serve refined fuels customers.
CHS owns 84% of NCRA and will become its sole owner in
Since 2011, CHS also has:
- Increased refined fuels storage and added a four-lane
truck loading rack at its Minot terminal in North
- Added rail car unloading and new load arms and pumps at
- Begun construction of a new refined
fuels terminal at Laurel, Montana, expected to be complete
in spring 2014
"Combined, these supply and distribution investments --
supported by project
s at our Laurel, Montana,
and McPherson, Kansas, refineries; and our purchase of the
remaining ownership in the Kansas refinery
, and our CHS
transportation team -- create an even stronger refined fuels
network dedicated to meeting our customers' needs," Debertin