April 3, 2021 [S&P Global Platts]Project include storage, blending, transportation of renewable diesel deal comes ahead of Canada’s 2022 Clean Fuel Standard
Canadian midstream company Gibson Energy signed a long-term deal with Suncor for services at Gibson’s Edmonton, Alberta, refined product and crude oil storage terminal, which include an expansion to “support the blending and loading of third party biofuels for Suncor,” the company said in a March 31 statement.
The deal precedes Canada’s Clean Fuel Standard regulation, which comes into effect in 2022 and requires parties like refiners to meet reduced carbon intensity requirements in liquid transportation fuels by producing and blending biofuels like renewable diesel and sustainable aviation fuel.
Gibson said additional infrastructure constructed for the Biofuels Blending Project at its Edmonton Terminal will be used to “facilitate the storage, blending and transportation of renewable diesel” under a 25 year term contract, which will be combined with other Suncor contracts into a single master contract.
The project will contribute to at least half of Gibson’s 2021 growth capital expenditures being ESG positive, the statement said.
Gibson’s Edmonton terminal has 1.7 million barrels of crude and refined products storage capacity and is located adjacent to Suncor’s 146,000 b/d Edmonton refinery.
No further details on the project were provided, and Mark Chyc-Cies, Gibson’s vice president of planning and investor relations, said in an email the release “respects the level of detail our customer was comfortable sharing at this point.”
A representative from Suncor was not immediately available to provide more details on the project.
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