Gibson Energy is continuing the rapid build-out of crude oil storage capacity at its Hardisty Terminal.
The company announced on Friday it will proceed with 500,000 barrels of additional tankage at its Top of the Hill site.
This brings the total up to 3.6 million barrels of new capacity announced over the last 18 months, comprised of eight new tanks at Top of the Hill.
Gibson said that it successfully placed the first phase of this development into service ahead of schedule in mid-February 2019.
With the three tanks from the first phase at the Top of the Hill adding an incremental 1.1 million barrels of storage, the company’s Hardisty Terminal has reached an aggregate storage capacity of 10 million barrels.
Analysts with GMP FirstEnergy estimate that the new 500,000-barrel tank will carry a capital cost of approximately $40 million.
“The remaining tanks currently under construction at our Hardisty Terminal are ahead of schedule and we have also sanctioned the construction of an additional tank, underpinned by a long-term agreement and consistent with our outlook of two to four tanks per year over the medium-term,” Gibson CEO Steve Spaulding said in a statement.
“Based on commercial discussions, we expect to sanction several additional projects over the course of 2019, and importantly, we will ensure we remain fully funded for our entire sanctioned capital program.”