US Development Group and Gibson Energy have finalised all required commercial agreements with ConocoPhillips Canada to fully underpin and sanction the construction of the initial phase of the DRU at 50,000 barrels per day of inlet bitumen blend capacity and enable rail shipments of DRUbit to the US Gulf Coast.
USD and Gibson will now start construction of a diluent recovery unit in Alberta, Canada after receiving all required regulatory approvals, USD said in a statement. Construction of the DRU is expected to begin in April 2020, and the DRU could be placed into service later in the second quarter of 2021.
The two companies have said they are currently in commercial discussions with other potential producer and refiner customers to secure additional long-term, take-or-pay agreements to support future expansions of capacity at the DRU.
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