Gibson Energy plans to build an additional 500,000 barrels of new capacity at its Hardisty Terminal.
The announcement follows the signing of a long-term agreement with an investment grade customer, the closing of the divestitures of Wholesale Propane and non-core Environmental Services North, and continued execution on its infrastructure growth projects.
Steve Spaulding, president and CEO, says: 'We continue to demonstrate very strong execution on our infrastructure growth projects, with three new tanks totaling 1.1 million barrels at our Hardisty Terminal as well as the Viking Pipeline entering service ahead of schedule and in line with budgeted capital.
'In addition, the remaining tanks currently under construction at our Hardisty Terminal are ahead of schedule and we have also sanctioned the construction of an additional tank, underpinned by a long-term agreement and consistent with our outlook of two to four tanks per year over the medium-term. Based on commercial discussions, we expect to sanction several additional projects over the course of 2019, and importantly, we will ensure we remain fully funded from our entire sanctioned capital programme.'
The announced expansion represents the fourth phase of development to be constructed at the hop of the hill portion of the terminal. It is expected to be in service in the fourth quarter of 2020.
In mid-February, Gibson successfully placed the first phase of development at the top of the hill portion of the Hardisty Terminal into service ahead of schedule with capital costs in-line with budget. The facility has reached an aggregate storage capacity of 10 million barrels.
In the US, the company expects to begin construction of the pipeline connection between its Pyote East gathering system and the Wink Terminal in the second quarter, with the project expected to enter service in the fourth quarter of 2019.
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