CALGARY, Alberta – Gibson Energy Inc. announced today it has entered into a long-term agreement with Suncor Energy Inc. (“Suncor”) for services at the Company’s Edmonton Terminal and the related sanction of an expansion to support the blending and loading of third-party biofuels for Suncor (the “Biofuels Blending Project”).
“We are very pleased to announce a long-term agreement with Suncor, a respected senior Canadian integrated customer, at our Edmonton Terminal,” said Steve Spaulding, President, and Chief Executive Officer. “This agreement demonstrates the importance of our infrastructure to our customers over the long-term, and how our asset base can help support energy transition and the changing needs of our customers while providing attractive growth opportunities for Gibson. Also, with the addition of the Biofuels Blending Project, over two-thirds of the Company’s target $200 million in growth capital in 2021 has been fully sanctioned.”
Agreement at Edmonton Terminal
As part of the agreement, all existing assets at the Edmonton Terminal currently contracted with Suncor will be combined into a single Master Services Agreement (“MSA”). Under the MSA, Gibson will receive a fixed-fee for the use of its assets, which currently represent the majority of third-party revenues at the Edmonton Terminal. The MSA also contemplates the potential future sanction of additional infrastructure at the Edmonton Terminal on a similar fixed-fee basis under a 25-year term.
Sanction of Biofuels Blending Project
Gibson has sanctioned the construction of the Biofuels Blending Project at its Edmonton Terminal under a 25-year term. The additional infrastructure will be used to facilitate the storage, blending and transportation of renewable diesel. The project will contribute to at least half of Gibson’s 2021 growth capital expenditures being ESG positive.
Gibson Energy Inc. (“Gibson” or the “Company”) (TSX: GEI) is a Canadian-based oil infrastructure company with its principal businesses consisting of the storage, optimization, processing, and gathering of crude oil and refined products. Headquartered in Calgary, Alberta, the Company’s operations are focused around its core terminal assets located at Hardisty and Edmonton, Alberta, and include the Moose Jaw Facility and an infrastructure position in the U.S.
Gibson shares trade under the symbol GEI and are listed on the Toronto Stock Exchange. For more information, visit www.gibsonenergy.com.