www.fueloilnews.com | FUEL OIL NEWS | JULY 2015 11
an expanded pipeline and terminal net-
work 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 lead-
ing 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 pipe-
line 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 cus-
tomer 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 mar-
ket share for CHS, these projects will be
immediately accretive to NuStar's earn-
ings 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 pipe-
line and modifications to the origin facility
will allow for increased propane supply to
be sourced from Conway, Kan., for deliv-
ery to propane terminals on the system.
NuStar will also expand its Rock Rapids,
Iowa, terminal to include propane ser-
vices. 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.
NEW AMERIGREEN PROPANE
TRANSLOAD FACILITY OPENS IN
AVONDALE
AMERIgreen Energy announces the open-
ing of a new propane transload facility in
Avondale, Pa. The facility's strategic loca-
tion will service propane dealers within
40 miles in the Eastern Pennsylvania and
New Jersey markets.
