September 8, 2016 [OPIS] - Canadian midstream energy company Gibson Energy said late on Tuesday that it will build two new 400,000-bbl crude oil storage tanks and related pipeline connection infrastructure at the company's Edmonton Terminal after securing commitments from customers.
The new tanks, which are expected to be in service by the second quarter of 2018, are underpinned by a long-term, take-or-pay contract with a large, integrated, investment-grade customer.
Complementing the 600,000 bbl of existing storage capacity, and the 300,000 bbl development project currently being completed for Statoil, this new project brings total storage capacity to 1.7 million bbl and will also serve to increase overall pipeline interconnectivity at Gibsons’ Edmonton terminal.
“As we move through the third quarter, we continue to see modest improvements, as expected, within our Logistics segment,” said Stewart Hanlon, Gibson’s CEO.
“However, we do not expect a material sequential improvement in our Wholesale segment due to adverse weather conditions in the third quarter, which have resulted in lower than expected road asphalt and NGL sales,” he said.
