Gibson Energy Inc is pleased to announce that it has received committed customer support for the construction of two new 400,000-barrel (16.8-million-gallon) crude oil storage tanks and related pipeline connection infrastructure at the company's Edmonton AB, Canada, terminal. The new tanks, which are expected to be in-service by the second quarter of 2018, are underpinned by a long-term, take-or-pay contract with a large, integrated, investment grade customer.
Complementing the 600,000 barrels of existing storage capacity, and the 300,000 barrel development project currently being completed for Statoil, this new project brings total storage capacity to 1.7 million barrels and will also serve to increase overall pipeline interconnectivity at Gibsons' Edmonton terminal.
"This most recent storage tank contract reflects the competitiveness of Gibsons' merchant terminal offering at Edmonton, as well as the commitment of our customer to their longer term growth plans," said Stewart Hanlon, Gibsons' president and chief executive officer.
"As we move through the third quarter, we continue to see modest improvements, as expected, within our Logistics segment. However, we do not expect a material sequential improvement in our Wholesale segment due to adverse weather conditions in the third quarter, which have resulted in lower than expected road asphalt and NGL sales.
“In this slowly recovering environment, the underlying strengths of our Infrastructure segment continue to offer robust returns and growth opportunities. We look forward to the continued build-out of our undeveloped acreage at both of our Edmonton and Hardisty terminals and the growth of the proportion of our cash flow streams attributable to the Infrastructure segment."