Joe Schnichels, project manager for CHS, said the terminal utilizes automated loading, allowing truckers access to the facility around the clock without staff members. Tanks at the terminal can store about 1 million gallons of propane.Īstrup estimated the terminal will serve suppliers in a 100-mile radius. Each shipment of 24 cars amounts to about 750,000 gallons of propane. The facility can unload two 24-car rail shipments each week. “A pipeline could be turned off and on,” he said. Variations in weather and rail shipping schedules are more difficult to control, Kumm said. CHS also has suppliers in Canada for diversity in case the supply from the Bakken is interrupted.
The bulk of the propane will come from a CHS-owned loading facility at Ross, and originates from the Bakken oilfields.
The Hannaford terminal will take delivery of propane by rail, Kumm said. “Last winter we had to pull (propane) from eight states and two Canadian provinces.” This led to shortages and high prices last fall and winter, according to Ken Astrup, general manager of Dakota Plains Cooperative in Valley City. Kinder Morgan Energy Partners, owners of the Cochin Pipeline, reversed the flow of the pipeline to deliver refined products from Illinois to Canada. Previously, most propane marketed in eastern North Dakota was delivered by the Cochin Pipeline from Canada, Kumm said. “We looked at where to place a terminal, and Hannaford was the logical place.” “This is a result of a two-and-a-half-year effort,” said Matt Kumm, propane marketing manager for CHS. The terminal will operate under the CHS propane terminal name.
DAKOTA PLAINS AG CENTER PATCH
The $6.5 million terminal is a project of CHS and Central Plains Ag Services and will bring propane from the Oil Patch to users in eastern North Dakota. Officials see a new propane terminal at Hannaford as a way to combat the shortages and high prices seen last year.
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