CALGARY, ALBERTA–(Marketwired – Sept. 6, 2016) –
All financial figures are in Canadian dollars
Gibson Energy Inc. (“Gibsons” or the “Company”) (TSX:GEI) is pleased to announce that it has received committed customer support for the construction of two new 400,000 barrel crude oil storage tanks and related pipeline connection infrastructure at the Company’s Edmonton 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,” Mr. Hanlon added. “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.”
Gibsons is a Canadian-based midstream energy company with operations in most of the key hydrocarbon-rich basins in North America. For over 60 years, Gibsons has delivered integrated midstream solutions to customers in the oil and gas industry. With headquarters in Calgary, Alberta, the Company’s North American operations include the storage, blending, processing, transportation, marketing and distribution of crude oil, liquids and refined products. The Company also provides oilfield waste and water management services. Gibsons is the second largest industrial propane distribution company in Canada operating under the Canwest Propane and Stittco Energy brands.
Gibson Energy Inc. shares trade under the symbol GEI and are listed on the Toronto Stock Exchange. For more information, visit www.gibsons.com.