August 29, 2012 [The Herald] - Gibson Energy Inc. and GT Logistics, L.L.C., announced today that they are currently in discussions regarding the formation of a joint venture to develop, construct and operate a storage terminal, to be combined with GTL's recently completed rail transloading facility with barge loading capability, for natural gas liquids, crude oil and other related products.
The 200-acre Port Arthur, Texas, site upon which the storage terminal would be built is part of a larger, approximately 1,100 acre parcel held by an affiliate of GTL for multimodal logistical development, and is attractive due to its close proximity to the refining industry and pipeline network. GTL has recently commissioned a state-of-the-art unit train-to-barge transloading facility on the site, serviced by Union Pacific. The next phase of the development would be to construct crude oil tank storage and pipeline connections. GTL has begun initial engineering, design and permitting studies, and anticipates that the proposed Joint Venture would commence construction of the storage terminal in 2013. The existing crude rail-to-barge transloading assets and business are expected to be contributed to the proposed Joint Venture by GTL.
Gibson expects to immediately initiate discussions with potential customers and subscribers for services at the storage terminal which would feature a multi-barge receiving dock on Taylor’s Bayou, convenient highway access and planned connectivity to the extensive network of pipelines serving the region.
“The strategic location of the storage terminal near the proposed terminus of TransCanada’s Keystone XL pipeline, combined with a unit train capable crude receipt facility, would provide an excellent opportunity to expand Gibson’s integrated services in the United States”, said Michael McGowan, Vice President Business Development of Gibson. “If the proposed Joint Venture proceeds and the storage terminal were to be completed, it would enable us to connect our access to crude and infrastructure at Gibson’s Hardisty, Alberta, hub with consumer markets in the Gulf Coast refinery complex.”
Bart Owens, GTL Vice President commented, “Gibson’s operational expertise, as demonstrated at their terminals located at Hardisty and Edmonton, Alberta, combined with their long-standing producer and refiner relationships would ensure our ability to understand and appropriately address customer needs as we move forward together with development of the storage terminal.”
While the discussions between Gibson and GTL are still in the preliminary, non-binding stage, GTL has granted Gibson a period of exclusivity to allow Gibson to conduct due diligence with regard to the proposed Joint Venture and the storage terminal.
