CHS Investing $20M to Strengthen Fuel Supply & Distribution

ST. PAUL, Minn. -- CHS Inc. is investing an additional $20 million this year to strengthen refined fuels supply dependability for its customer network.

According to the farmer-owned cooperative and global energy, grains and food company, the $20 million will go toward the final phase in an ongoing replacement of the company's refined fuels pipeline between Billings and Glendive, Mont., as well as a new pipeline connection at Council Bluffs, Iowa.

These projects will contribute to continued strong Cenex-branded fuel growth for CHS customers in the company’s northern tier region, said Jay Debertin, CHS' executive vice president and chief operating officer, Energy and Foods.

"These 2014 projects bring [the total] to more than $55 million that CHS has invested 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," Debertin said.

The pipeline replacement not only supports continued reliability, but also includes improvements to existing pumping stations. These pipeline projects will boost delivery capacity and enable CHS "to better adapt to the operational and market challenges that are inevitable in our business," he added.

Since 2011, CHS has also:

• Increased refined fuels storage and added a four-lane truck loading rack at its Minot, N.D., terminal;
• Added rail car unloading and new load arms and pumps at Glendive, Mont.; and
• Begun construction on a new refined fuels terminal at Laurel, Mont., expected to be completed in the spring.

St. Paul, Minn.-based CHS Inc. operates petroleum refineries and pipelines. It also manufactures, markets and distributes the Cenex brand of refined fuels, lubricants, propane and renewable energy products.