CHS 2013 Annual Report Download - page 7

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ENERGY
Shaping the future for our owners and
customers with every step forward,
CHS continued to build out its energy
platform in fiscal 2013. This included major
investments in refined fuels, propane
and lubricants supply and infrastructure,
global growth in renewable fuels, and
enhancements to its highly regarded
refined fuels and lubricants products. These
forward-looking steps help ensure CHS
not only delivers the best in products and
services today, but also remains relevant
in the global energy sector tomorrow.
Refined Fuels
As the nation’s leading cooperative refiner, CHS has
committed more than $1.4 billion to expanding its
refining capacity and dependable distribution. In
2013, CHS announced plans to invest $327 million
in capital improvements at its McPherson, Kan.,
refinery, which will boost refining capacity and
eciency by 18 percent to 100,000 barrels per day
and will increase production of premium diesel
fuel and other higher-margin energy products.
Construction also is under way on a $555 million
replacement coker at McPherson, with no slowdown
in refinery operations. Both projects are slated to
come on line in calendar 2016. As of Sept. 1, 2013, CHS
owns 84.04 percent of that operation — currently the
National Cooperative Refinery Association — and
will become sole owner on Sept. 1, 2015.
Investments also continue at the CHS Laurel,
Mont., refinery, where a new mild hydrocracker
came on line in 2013 to boost high-demand diesel
Support from CHS has resulted in refined
fuels growth for Mid Columbia Producers,
Moro, Ore., and more deliveries for
transport driver Russel Krusow.
08 CHS 2013