Gavilon Pipeline and Storage, a wholly owned subsidiary of The Gavilon Group, plans to construct aboveground storage tanks with more than 4 million barrels of crude oil storage capacity in Cushing, Oklahoma, US.
Local company Matrix Service, a wholly owned subsidiary of Matrix Service, is the industrial services contractor of the project, signing a $40 million (33.7 million) contract.
Deeprock Tanks will be the construction manager of the facility, which is expected to be complete during Q3 2011.
The incremental storage capacity will enable Gavilon to further strengthen its relationships with producers and refiners as well as support increased industry demand for storage at the North American hub, Tom Ramsey, chief operating officer of Energy at Gavilon says.
Earlier this year, Gavilon purchased 91 acres of land in Cushing to support its anticipated growth in the energy sector. Cushing is the physical delivery point for NYMEX crude oil contracts and a major hub for Gulf Coast imports and Canadian oil supply.
The Gavilon Group provides services in the physical distribution, trading, merchandising and risk management of raw materials and value-added products moving through the global supply chain of grain, feed ingredients, fertilizers and energy products.