Gibson Energy Inc. announced Monday the sanction of one million bbls of new tankage at the Hardisty Terminal, underpinned by a long-term agreement with an investment grade, senior oilsands customer.
The construction of two new 500,000 bbl tanks represents the third phase of development at the Top of the Hill portion of the Hardisty Terminal, and will leverage certain infrastructure built as part of the prior phases.
The third phase is expected to be in service in the first quarter of 2020 at a capital cost consistent with the company’s target build multiple of 5x to 7x EBITDA.
In aggregate, the three phases currently under construction will add seven new tanks, representing an incremental 3.1 million bbls of storage and an approximately 35 per cent expansion of the Hardisty Terminal.
With the additional capital spending during the current year from the sanction of the third phase of development, the company has increased its 2018 growth capital expenditure budget to be in the range of $275 million to $325 million.