Gibson Energy is to construct two new tanks at the Hardisty Terminal, adding approximately 1 million barrels of storage in its third phase of expansion. In aggregate, the three phases currently under construction will add seven new tanks, representing an incremental 3.1 million barrels of storage and an approximately 35% expansion of the Hardisty Terminal.
“With nearly a half-billion dollars of sanctioned growth capital relative to an annual target of $150m to $200m, Gibson has secured the projects required to exceed our 10% growth target through to 2020,” said Steve Spaulding, President and Chief Executive Officer. “Importantly, we remain fully funded for all our sanctioned capital through our non-core dispositions and retained cash flows from the first nine months of the year, including our expectation of another very strong contribution from the Wholesale segment in the third quarter. We also remain in discussions with several existing and potential customers regarding their needs for additional tankage and continue to expect we will sanction two to four tanks per year over the medium-term.”
The construction of two new 500,000 barrel tanks represents the third phase of development at the Top of the Hill portion of the Hardisty Terminal, and will leverage certain infrastructure built as part of the prior phases. The third phase is expected to be in service in the first quarter of 2020 at a capital cost consistent with the company’s target build multiple of 5x to 7x EBITDA.
With the additional capital spending during the current year from the sanction of the third phase of development, the Company has increased its 2018 growth capital expenditure budget to be in the range of $275m to $325m.
For more information visit: www.gibsonenergy.com
16th October 2018
