CALGARY, AB – Gibson Energy Inc. announced today it has sanctioned the construction of new tankage at its Edmonton Terminal.
“We are pleased to announce the sanction of new tankage at our Edmonton Terminal, extending our pipeline of high-quality, long-term infrastructure growth projects,” said Steve Spaulding, President and Chief Executive Officer. “We continue to see the need for additional tankage in Edmonton ahead of the Trans Mountain Pipeline Expansion entering service and remain in discussions with other shippers regarding further opportunities. Combined with the other commercial discussions we are having across our asset base, we feel confident in our ability to secure infrastructure growth opportunities at a pace that will ensure we continue to drive meaningful per share growth.”
Gibson has sanctioned the construction of a new 435,000 barrel tank at its Edmonton Terminal, to be placed into service in early 2023. The new tankage will be constructed at a capital cost consistent with the Company’s target build multiple of 5x to 7x EBITDA under a long-term, take-or-pay and stable fee-based contract with a new investment grade energy customer.
With the sanction of the new tankage at Edmonton, as well as the addition of several smaller projects throughout the Company’s asset base, Gibson anticipates growth capital in 2021 of approximately $200 million. Gibson remains fully-funded for all sanctioned capital, with significant incremental internal funding capacity. This funding position is largely the result of the sustained growth of the Company’s Infrastructure businesses, increasing retained cash flows and further strengthening Gibson’s balance sheet.
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.