Gibson Energy says it has given the go-ahead to build two new 500,000-bbl oil tanks at its Hardisty Terminal, continuing an ongoing steady expansion of the storage facility.
The company said it has also welcomed a new refining customer to the terminal, which CEO Steve Spaulding says reflects the importance of Hardisty to downstream players looking to secure heavy crude feedstocks from Western Canada.
One of the new tanks is contracted to the new refining customer, while the second tank will be leased to Gibson’s marketing segment under an inter-company agreement.
In November 2019, Gibson placed four new tanks with two million barrels of storage into service, ahead of schedule and within target capital costs, the company said.
Gibson said it now has three tanks representing 1.5 million barrels of storage capacity currently under construction at the Top of the Hill portion of the Hardisty Terminal.
The company expects to have approximately 13.5 million barrels of storage capacity in service in the fourth quarter of 2020, up from 5 million barrels in 2014.
“We remain in discussions for further tankage opportunities, leading to our confidence in our ability to continue to sanction tankage at a rate of two to four tanks per year in 2020, and beyond,” Spaulding said.