Gibson has sanctioned the construction of a new 435, 000 barrel tank at its Edmonton Terminal, to be placed into service in early 2023.
The new tankage will be constructed at a capital cost consistent with the company’s target build multiple of 5x to 7x EBITDA under a long-term, take-or-pay and stable fee-based contract with a new investment grade energy customer.
Steve Spaulding, Gibson’s president and CEO, said: “We continue to see the need for additional tankage in Edmonton ahead of the Trans Mountain Pipeline Expansion entering service and remain in discussions with other shippers regarding further opportunities. Combined with the other commercial discussions we are having across our asset base we feel confident in our ability to secure infrastructure growth opportunities at a pace that will ensure we continue to drive meaningful per share growth.”
With the sanction of the new tankage at Edmonton, as well as the addition of several smaller projects throughout the company’s asset base, Gibson anticipates growth capital in 2021 of approximately $200m.
It remains fully funded for all sanctioned capital, with significant incremental internal funding capacity. This funding position is largely the result of the sustained growth of the company’s Infrastructure businesses, increasing retained cash flows and further strengthening Gibson’s balance sheet.
For more information visit: www.gibsonenergy.com
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