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CHS expansion should benefit farmers in Upper Midwest

CHS is working on a project that it says will expand access to diesel fuel for farmers in the Upper Midwest.

The nation’s largest cooperative plans to connect its Cenex pipeline near Prosper, North Dakota to a NuStar pipeline with completion scheduled for the spring of 2017.

CHS vice president of wholesale operations Jason Schwantz (shwontz) says the coop is taking steps to receive regulatory approval.

“We have a refinery in Laurel, Montana, and a Cenex pipeline that goes from Laurel to Glendive and Minot, over to Fargo and ties into the Magellan System.  But in Prosper, North Dakota we are working to get some pipeline that will hook into a NuStar pipeline that goes from Mandan all the way down to the Twin Cities.”

He tells Brownfield that would give CHS more supply capability for its member customers in Minnesota, North Dakota and South Dakota.

The company has also partnered with NuStar on a connection to a pipeline in Council Bluffs, Iowa.

Schwantz says farmers in the region will benefit from this expansion.

“That’s what a lot of our focus is on (that) spring and fall demand from ag customers; being able to get our premium diesel fuel and our No. 2 distillate to those people in a timely fashion so they can continue on with their farming and not have to worry about fuel supply during those times.”

Senior vice president Darin Hunhoff says CHS has invested $90 million dollars over the past five years to develop a robust supply network of refined fuels in the area.

The company operates petroleum refineries and manufactures, markets and distributes Cenex brand products.