Gibson Energy will build 1.1 million barrels of additional storage capacity at its Hardisty Terminal.
The company says the two 300,000 barrel tanks and one 500,000 barrel tank are due to be placed into service in the third quarter of 2019. The two 300,000 barrel tanks are supported by a long-term, fixed fee contract with a senior, investment grade, oil sands customer.
This expansion will swell overall capacity at the terminal to 10 million barrels.
The 500,000 barrel tank will service operational needs, the company says, replacing the tank that was earmarked for that purpose in the last expansion phase, which ended up being contracted to a customer under a long-term contract.
Steve Spaulding, president and CEO of Gibson, says: ‘Our Hardisty Terminal continues to demonstrate its commercial competitiveness and this contract affirms the on-going demand for our strategic storage infrastructure in support of incremental oil sands brownfield development.
‘We will continue to focus on the build-out of the undeveloped acreage at both our Hardisty and Edmonton terminals, and the growth of the proportion of our cash flow stream attributable to the infrastructure segment, as our number one strategic priority.’