CHS to expand diesel output at Montana refinery

CHS, the leading US farmer-owned cooperative and a global energy, grains and foods company, announced Thursday it will invest $406 million in its refinery in Laurel, Montana, to boost efficiency and increase diesel production. 

 

"These projects, along with all of our ongoing major refining, distribution and storage investments, underscore our continued commitment to building the CHS energy platform," said Jay Debertin, CHS executive vice president and chief operating officer of its energy segment. 

"We are dedicated to providing long-term dependable supplies of quality refined fuels products that help our owners and rural customers grow," he added.

The investments consist of related projects, some of which will begin this fall, and are expected to be completed in phases through 2019.

Included in the $406 million investment are:

Debertin said the additional diesel production will help its growing network of Cenex-branded marketers continue to capture growth opportunities resulting from robust diesel demand, particularly in the northern tier states.

With the addition of these projects, CHS says it has now invested nearly $2 billion in recent years on its operations based at Laurel and McPherson, Kansas, including refinery ownership, production expansion and efficiencies; new and expanded terminals and storage; and an additional crude oil supply connection.

Debertin said when all current Montana and Kansas refinery projects are complete in 2019, total CHS refining capacity will increase by as much as 33%, from 120,000 bpd to an estimated 160,000 bpd.