​Gibson shifting focus to Alberta oil terminals; targets up to $375 million in asset sales

Gibson Energy's Hardisty Terminal. Image: Gibson Energy

Gibson Energy says it is selling four additional packages of non-core assets over the next two years as it turns its focus to oil infrastructure.

Last year the company completed the $435-million sale of its industrial propane business and announced the sale of its U.S. environmental services arm.

The company’s oil terminals form the core of its go-forward strategy in Canada, while in the U.S. it will focus on injection and gathering systems in the SCOOP/STACK basins in Oklahoma.

Gibson plans to raise $275 million to $375 million in aggregate non-core asset sales in 2018 and 2019, a program that now includes its NGL wholesale, Canadian truck transportation, non-core U.S. injection stations and truck transportation, and non-core Canadian environmental services.

Oil infrastructure is expected to comprise approximately 85 percent of segment profit by the end of 2019, with 75 percent coming from Gibson's Hardisty and Edmonton terminals.

“The company expects that the long-term growth of oilsands production will continue to increase heavy oil flows into Hardisty, driving producer demand for additional tankage. Gibson has a very strong competitive position at Hardisty and expects that the company will continue to secure a significant proportion of incremental third-party tank build opportunities,” Gibson said in a statement.

“These factors are expected to support the sanction of at least 1 to 2 tanks per year on run-rate basis in an approximately US$45 to US$65 per barrel oil price environment, with potential upside if oil prices continue to strengthen or if producer demand for days of storage increases.”