MOSES LAKE — A leading energy and food company plans to locate a petroleum distribution facility in Moses Lake, and is seeking property in the area.

St. Paul, Minn.-based CHS Inc., announced plans earlier this week to construct two new terminals in Montana and a third in Eastern Washington. The new terminals maximize supply efficiency for customers of its Cenex-brand refined fuels products.

"A petroleum terminal, simply put, is a bulk distribution point for petroleum fuels," explained John Traeger, CHS manager of pipelines and terminals, based in Laurel, Mont. "The terminal is supplied in this case by rail car, and then we unload the railcars into tanks and the tanks can be used to load up transport trucks, which then can distribute to either smaller bulk plants in the area or directly to fueling stations."

Since the facility is going to be supplied via rail, Traeger said CHS is looking for property with rail proximity or access.

The biggest factor for the company in considering the Moses Lake area was related to the fact CHS has a lot of business in Eastern Washington, Traeger said.

The terminal would probably employ two operations personnel to maintain and operate the terminal.

"Most likely it could be two," Traeger said. "It could be one more or one less, depending on how we arrange the facility."

CHS has some personnel already in Moses Lake, Traeger said, because it has seed and fertilizer businesses in the area. Part of the employee number decision also depends on where the facility winds up being built.

Traeger declined to comment regarding the cost of putting in a facility, and said a timeline is not yet possible.

"We're actively seeking a piece of property to put it on," he said. "Obviously, once we identify a location, we'll have a better idea of how long it's going to take to develop, permits and those kinds of issues."

The terminals already under construction in Montana are located in Logan and Missoula. The three terminals will supply CHS customers with products from the company's refinery in Laurel.