NuStar, CHS to bring more propane to Upper Midwest

NuStar Energy LP and CHS Inc. plan to develop an expanded pipeline and terminal network that will increase the supply of propane to the Upper Midwest.

According to a press release, NuStar and CHS will use NuStar’s pipeline and terminal network that connects to Conway, Kan. As part of an agreement, NuStar will increase the volume of propane moved in its Central East pipeline and terminal system. Long-term, dedicated throughput and storage agreements with CHS will back the related capital investments.

Partnership projects in development are an eight-mile, 8-inch pipeline at NuStar’s Conway, Kan., origin facility, which is near the southern end of NuStar’s East Refined Products Pipeline System. The new pipeline and modifications to the origin facility will allow for increased propane supply to be sourced from Conway, Kan., for delivery to propane terminals on the system.

NuStar will also expand its terminal in Rock Rapids, Iowa, to include propane services. NuStar says this terminal expansion will allow it to gain more efficiencies in an underused facility, as well as allow CHS to better supply the region with propane.

The companies expect to complete these projects by the fourth quarter of 2015.