Sugar Land, Texas — CVR Partners LP expects its Coffeyville, Kan., UAN expansion to be complete by the start of 2013, earlier than expected. The expansion will allow CVR to convert virtually all of Coffeyville’s ammonia production into more highly valued UAN. This will increase CVR UAN capacity to over 1 million st, which is approximately 50 percent higher than current levels. CVR estimates the expansion could add about $0.25 per unit to cash available for distribution in 2013. CVR said all of the major towers have been erected, including the cooling tower. The motor control and main compressors have been set, and the building is in the final stage of completion. CVR says its new $2 million, 10,000 st storage distribution tank facility at Phillipsburg, Okla. (GM Nov. 14, 2011, p. 1), is essentially complete and is expected to go into service soon. CVR has been unloading railcars into the tanks and expects to start shipping product out of the tanks later in the month. CVR says the new storage will allow it to selectively store some production during periods of lower pricing and then sell and market that product during peak periods later in the year, thereby allowing the company to capture increased margins per UAN tons sold. CVR’s plan over the next several years is to build a number of these facilities near farming communities across the Midwest. CVR has previously noted that it might also build storage and market product out of Wynnewood, Okla., where CVR Energy Inc., its majority owner, bought the Gary-Williams Energy Corp. refinery last year (GM Nov. 14, 2011, p. 1).
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