SAN ANTONIO--(BUSINESS WIRE)--May 19, 2015--
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150519006979/en/
Source: NuStar Energy L.P. and CHS Inc.
Media:
NuStar
Greg Matula, 210-918-2318
greg.matula@nustarenergy.com
or
CHS
Malissa
Fritz, 651-355-4585
malissa.fritz@chsinc.com
or
Investors:
NuStar
Chris
Russell, 210-918-3507