Keeping Opportunity Flowing The United States, as the cover story in this issue of C tells us, is now fl owing with aff ordable energy from homegrown and other North American sources. That means the U.S. is closer to energy independence than it has been in decades. This shift comes as a stronger economy has boosted energy demand. But opportunity is often accompanied by challenge. New crude oil sources, shifting product demand and evolving distribution systems are changing how energy is transported to end users. For CHS, this means ensuring our owners and other customers get the quality products they need when they need them. To achieve that, we’ve invested more than $2.3 billion in the past three years across the CHS energy production and distribution platform. We’re gaining access to additional production by buying the remaining ownership in the McPherson, Kan.,–based refi ning and distribution operations, and we’re investing in an 18 percent capacity expansion there. We’re building a new coker at McPherson, and we’ve installed a mild hydrocracker at the Laurel, Mont., refi nery to boost diesel output. With those projects and the added McPherson ownership, by 2016 we’ll have gained nearly the production equivalent of another Laurel-sized refi nery. In addition, to ensure continued dependable operations at Laurel, we’re augmenting our own Montana crude oil pipeline by connecting to a nearby pipeline. We’re also ensuring the oil we refi ne can get to you. Since 2011, CHS has invested more than $55 million in northern-tier supply and distribution infrastructure to support growth in diesel and other refi ned fuels. This includes new and upgraded transportation terminals, storage and rail transportation. In 2014, we’ll complete the fi nal phase of an ongoing pipeline replacement project on our refi ned fuels pipeline between Billings and Glendive, Mont., featuring improvements to existing pumping stations that will boost delivery capacity by up to 10 percent. Carl Casale, president and CEO, CHS We’ve also brought online a new pipeline connection at Council Bluff s, Iowa, to improve our access to terminals serving eastern South Dakota and southeastern North Dakota. Our energy investments extend to propane, where traditional distribution patterns are changing. We’re investing $24 million in terminals and fl eet expansion. And we’re working closely with our marketers to ensure they and their end users have storage that supports their needs in the changing propane supply environment. The evolving energy sector not only means investments in energy production and distribution, but also means other opportunities are opening up in U.S. energy. Abundant, aff ordable natural gas — a major component in fertilizer manufacturing — has been a significant driver as we explore construction of a nitrogen plant at Spiritwood, N.D. As this issue of C goes to press, we’re in the fi nal decision stage on that project. Since the fi rst gasoline-powered tractors, energy and agriculture have advanced hand in hand and CHS has been there for our owners and rural America. As this next chapter in our nation’s energy story unfolds, we’ll be there to help you go with the fl ow. We’ve invested more than $2.3 billion in the past three years across the CHS energy production and distribution platform. Your CHS Connection 5
Issue Articles
Keeping Opportunity Flowing
Carl Casale
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