NuStar and CHS to Expand Pipeline and Terminal Infrastructure to Transport and Store Propane in Upper Midwest U.S.
May 19 2015 - 2:46PM
Business Wire
NuStar Energy L.P. (NYSE: NS) and CHS Inc. announced today that
the companies are pursuing a strategic alliance to develop an
expanded pipeline and terminal network that will increase supply of
propane to meet product demand in the Upper Midwest.
“We are excited to pursue this strategic alliance with NuStar.
The investments support our long-term commitment as a reliable
supplier of propane,” said Andrew Combs, CHS vice president,
propane. “These projects will enhance the overall efficiency of our
distribution system and assist our customers’ continued
growth.”
CHS is the nation’s leading farmer-owned cooperative and global
energy, grains and foods business and a leading propane supplier in
the region. This agreement will increase the availability and
dependability of the propane supply in the Upper Midwest by
utilizing NuStar’s pipeline and terminal network that connects to
Conway, Kan., a Midwest hub for propane storage and fractionation
facilities. As part of this agreement, NuStar will increase the
volume of propane moved in its Central East pipeline and terminal
system. The related capital investments will be backed by
long-term, dedicated throughput and storage agreements with
CHS.
“CHS has been an outstanding customer and business partner to
NuStar for many years, and we look forward to taking our
relationship with them to an even higher level through this
alliance,” said Brad Barron, president and CEO of NuStar. “In
addition to increasing market share for CHS, these projects will be
immediately accretive to NuStar’s earnings when they are
completed.”
Key projects under development include construction of an
eight-mile, eight-inch pipeline at NuStar’s Conway, Kan., origin
facility, which is near the southern end of NuStar’s East Refined
Products Pipeline System. The new pipeline and modifications to the
origin facility will allow for increased propane supply to be
sourced from Conway, Kan., for delivery to propane terminals
on the system. NuStar will also expand its Rock Rapids,
Iowa, terminal to include propane services. This terminal
expansion will allow NuStar to gain more efficiencies in an
underutilized facility, and allow CHS to better supply the region
with propane. All of these projects are projected to be completed
by the fourth quarter of 2015.
About NuStar Energy L.P.
NuStar Energy L.P., a publicly traded master limited partnership
based in San Antonio, is one of the largest independent liquids
terminal and pipeline operators in the nation. NuStar currently has
8,708 miles of pipeline and 81 terminal and storage facilities that
store and distribute crude oil, refined products and specialty
liquids. The partnership’s combined system has approximately 93
million barrels of storage capacity, and NuStar has operations in
the United States, Canada, Mexico, the Netherlands, including St.
Eustatius in the Caribbean, and the United Kingdom. For more
information, visit NuStar Energy L.P.'s Web site at
www.nustarenergy.com.
About CHS Inc.
CHS Inc. (www.chsinc.com) is a diversified energy, grains and
foods company committed to providing the essential resources that
enrich lives around the world. A Fortune 100 company, CHS is owned
by farmers, ranchers and cooperatives, along with thousands of
preferred stockholders across the United States. CHS supplies
energy, crop nutrients, grain, 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. CHS is listed on the NASDAQ at
CHSCP.
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version on businesswire.com: http://www.businesswire.com/news/home/20150519006979/en/
Media:NuStarGreg Matula,
210-918-2318greg.matula@nustarenergy.comorCHSMalissa Fritz,
651-355-4585malissa.fritz@chsinc.comorInvestors:NuStarChris
Russell, 210-918-3507
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