Gibson Energy has sanctioned the construction of two new tanks comprising one million barrels of new tankage at its Hardisty Terminal.
The two new 500,000-barrel tanks will be built at the Top of the Hill portion of the terminal. This represents an expansion of the fourth phase of development at the Top of the Hill, which will be in service by the end of 2020. One of the tanks is contracted to a new investment grade refining customer, while the second tank will be leased to Gibson’s marketing segment under an intercompany agreement with the infrastructure segment.
President and CEO Steve Spaulding says: ‘The sanction of two new tanks at the Top of the Hill will further increase our high-quality, long-term infrastructure revenues and drive continued distributable cash flow per share growth.
‘We are also very pleased to welcome a new refining customer to the terminal, reflecting the importance of Hardisty to downstream players looking to secure heavy crude feedstocks from Western Canada. In addition, we remain in discussion for further tankage opportunities, leading to our confidence in our ability to continue to sanction tankage at a rate of two to four tanks per year in 2020, and beyond.’