CHS, Wenner Gas partner on Minnesota propane terminal upgrade

CHS Inc. has signed an agreement to create a limited liability company with Wenner Gas Co. of Cold Spring, Minn., to enhance storage and service capabilities at a propane rail terminal in Rockville, Minn. The announcement is the latest in a series of CHS actions to secure a reliable supply for customers affected by the upcoming Cochin pipeline reversal project, the company says.

“This agreement is part of an estimated $18 million investment previously announced by CHS to expand propane service in the region affected by the Cochin reversal project,” said Drew Combs, CHS vice president of propane.

Served by the BNSF railroad, the terminal will be expanded by July 31, 2014. Following expansion, it will have 620,000 gallons of storage with the ability to offload eight railcars every 4.5 hours and two truck-loading bays capable of loading six trucks per hour.

The new company will access and distribute propane through the new terminal to serve existing customers as well as new customers in central Minnesota.