CHS 2013 Annual Report Download - page 8

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Propane, Lubricants and Renewable Fuels
With significant reshaping occurring in North
America’s propane supply sector, CHS is staying
ahead of the game. CHS secured long-term
propane rail supply agreements to counter planned
pipeline changes that will reduce propane volume
moving from Canada to the United States in 2014.
CHS is investing more than $18 million to expand
northern-tier states’ rail terminals and storage in
time for the 2014–2015 heating season to secure
customer supplies.
Extending its reach in New England, CHS brought
its new Biddeford, Maine, propane terminal on
line in late calendar 2012. The 180,000-gallon
automated terminal helps retailers serve home
REVIEW OF OPERATIONS
fuel production by about 4,000 barrels per day.
Combined with increased storage, construction
of ecient terminals and a new crude oil pipeline
connection in Montana, CHS continues to make
future refined fuels supply a first priority for its
stakeholders.
Refined fuels exceeded performance expectations
in fiscal 2013, including increasing gasoline sales by
3.4 percent over 2012, even as the total domestic
market declined by up to 5 percent for the year.
Supporting that growth was the addition of more
than 60 retail fueling locations under the Cenex®
brand, along with marketshare expansion in the
eastern Corn Belt region.
The growing Cenex and Cabela’s® co-branded
loyalty program has been extended through 2019.
The popular program increases sales for Cenex
retailers and saves them nearly $1 million in
credit card processing fees.
Tomorrow’s Top Products Benefit
Owners Today
Significant performance enhancements were
made to Cenex® Ruby Fieldmaster® and
Cenex Roadmaster XL® premium diesel fuel
additive packages.
The new Cenex Sure Seal® WL product family,
with eight viscosity grades, meets northern
oil fields’ lubricants needs and is supported
by an expanded sales team dedicated to
the energy exploration segment.
Cenex® Total Protection Plan®
Warranty program growth
2,446
5,140
2007 2013
$2.3B
Investments in our energy platform, 2011–2016
09CHS 2013