CHS Investing $327M to Boost Refining Capacity
ST. PAUL, Minn. -- CHS Inc. will spend $327 million to boost its refinery capacity by 18 percent at its National Cooperative Association facility in McPherson, Kan.
The project, which will begin this spring, will increase CHS' refining capacity to 100,000 barrels per day from the facility's current 85,000 barrel-per-day capacity. Completion of the project will take place in phases during the second half of calendar year 2015 and the early months of 2016, stated CHS. The refinery will continue to operate during the expansion project.
"Investing in additional refining capacity at McPherson is further evidence of our commitment to expanding our energy platform to add value for our owners and customers while becoming the premier marketer of refined fuels to rural America," said Jay Debertin, CHS' executive vice president and CEO, energy and foods.
Debertin continued that the additional refinery production will be equally divided between diesel and gasoline to "best meet our customers' agricultural needs in rural America."
With this expansion, CHS has invested more than $1.4 billion over the past 24 months to upgrade its refining, pipeline and distribution system.
Founded in 1998, St. Paul, Minn.-based CHS Inc. is owned by farmers, ranchers and cooperatives across the country. The company supplies energy, crop nutrients, grain marketing services, animal feed, food and food ingredients, as well as business solutions including insurance, financial and risk management services. CHS also operates petroleum refineries and pipelines, and manufactures, markets and distributes the Cenex fuel brand.