CHS will boost crude oil access with Express Pipeline connection
ST. PAUL, Minn., Feb. 13, 2013
ST. PAUL, Minn., Feb. 13, 2013 /PRNewswire/ -- CHS Inc. (NASDAQ: CHSCP), an
energy, grains and foods company and the nation's leading farmer-owned
cooperative, announced today it will build a seven-mile connection in central
Montana to link its Front Range Crude Oil pipeline with the Kinder Morgan
Kinder Morgan-Canada and Front Range Pipeline, LLC, a wholly owned CHS
subsidiary, will construct storage, pipeline, and other associated equipment
needed to connect the Express Pipeline to the Front Range Pipeline near
Buffalo, Mont. Front Range Pipeline will invest about $15 million in the
connecting pipeline and associated equipment. Once completed, this connection
will allow access to an additional source and wider variety of Canadian crude
oils for the CHS Laurel Refinery.
"This investment helps ensure that CHS can continually source crude oil for
our Laurel Refinery, further strengthening our ability to produce reliable
supplies of quality refined fuels products to meet the needs of our
cooperatives, producers and other customers," said Jay Debertin, executive
vice president and chief operating officer, Energy and Foods. "The link
creates important refining flexibility for Laurel by providing access to
additional varieties of Canadian crude oil."
Pending permitting and other approvals, the project is expected to begin this
summer with completion estimated for fall 2014. Debertin added that in
constructing and operating the new pipeline connection, CHS is committed to
making safety and environmental protection its priorities as it does with all
of its pipeline operations.
The Express Pipeline, originating at Hardisty, Alberta, Canada, is one of
North America's major crude oil lines moving up to 280,000 barrels per day
from Canada to U.S. markets in Montana, Wyoming, Utah and Colorado.
Kinder Morgan Energy Partners, L.P. (NYSE: KMP), along with its partners
(Ontario Teachers' Pension Plan Board and Borealis Infrastructure) entered
into a definitive agreement to sell 100% of the Express Pipeline System to
Spectra Energy Corp. The transaction is subject to customary consents and
regulatory approvals and is expected to close in the first half of 2013.
The 55,000 barrels per day Laurel Refinery currently receives Canadian and
Montana crude oil through the company's Front Range pipeline which extends
from the Canadian border to the refinery. The planned pipeline connection will
take place about 150 miles northwest of Laurel.
The connection to the Express Pipeline will not increase Laurel refining
CHS Inc. (www.chsinc.com) is a leading global agribusiness owned by farmers,
ranchers and cooperatives across the United States. Diversified in energy,
grains and foods, CHS is committed to helping its customers, farmer-owners and
other stakeholders grow their businesses through its domestic and global
operations. CHS, a Fortune 100 company, supplies energy, crop nutrients, grain
marketing services, livestock feed, food and food ingredients, along with
business solutions including insurance, financial and risk management
services. The company operates petroleum refineries/pipelines and
manufactures, markets and distributes Cenex^® brand refined fuels, lubricants,
propane and renewable energy products.
This document contains forward-looking statements within the meaning of The
Private Securities Litigation Reform Act of 1995 that are based on
management's current expectations and assumptions. These forward-looking
statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from the potential results discussed in
the forward-looking statements. The company undertakes no obligations to
publicly revise any forward-looking statements to reflect future events or
circumstances. For a discussion of additional factors that may materially
affect management's estimates and predictions, please view the CHS Inc. annual
report filed on Form 10-K for the year ended Aug. 31, 2012, which can be found
on the Securities and Exchange Commission web site (www.sec.gov) or on the CHS
web site www.chsinc.com.
SOURCE CHS Inc.
Contact: Lani Jordan, +1-651-355-4946, email@example.com
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