CALGARY, Aug. 28, 2012 /PRNewswire/ - Gibson Energy Inc. ("Gibson") TSX: GEI, and GT Logistics, L.L.C. ("GTL"), announced today that they are currently in discussions regarding the formation of a joint venture (the "Joint Venture") to develop, construct and operate a storage terminal, to be combined with GTL's recently completed rail transloading facility with barge loading capability, for natural gas liquids, crude oil and other related products.
The 200-acre Port Arthur, Texas, site upon which the storage terminal would be built is part of a larger, approximately 1,100 acre parcel held by an affiliate of GTL for multimodal logistical development, and is attractive due to its close proximity to the refining industry and pipeline network. GTL has recently commissioned a state-of-the-art unit train-to-barge transloading facility on the site, serviced by Union Pacific. The next phase of the development would be to construct crude oil tank storage and pipeline connections. GTL has begun initial engineering, design and permitting studies, and anticipates that the proposed Joint Venture would commence construction of the storage terminal in 2013. The existing crude rail-to-barge transloading assets and business are expected to be contributed to the proposed Joint Venture by GTL.
Gibson expects to immediately initiate discussions with potential customers and subscribers for services at the storage terminal which would feature a multi-barge receiving dock on Taylor's Bayou, convenient highway access and planned connectivity to the extensive network of pipelines serving the region.
"The strategic location of the storage terminal near the proposed terminus of TransCanada's Keystone XL pipeline, combined with a unit train capable crude receipt facility, would provide an excellent opportunity to expand Gibson's integrated services in the United States", said Michael McGowan, Vice President Business Development of Gibson. "If the proposed Joint Venture proceeds and the storage terminal were to be completed, it would enable us to connect our access to crude and infrastructure at Gibson's Hardisty, Alberta, hub with consumer markets in the Gulf Coast refinery complex."
Bart Owens, GTL Vice President commented, "Gibson's operational expertise, as demonstrated at their terminals located at Hardisty and Edmonton, Alberta, combined with their long-standing producer and refiner relationships would ensure our ability to understand and appropriately address customer needs as we move forward together with development of the storage terminal."
While the discussions between Gibson and GTL are still in the preliminary, non-binding stage, GTL has granted Gibson a period of exclusivity to allow Gibson to conduct due diligence with regard to the proposed Joint Venture and the storage terminal.
Gibson is one of the largest independent midstream energy companies in Canada and a major participant in the crude oil transportation business in the United States, and is engaged in the movement, storage, blending, processing, marketing and distribution of crude oil, condensate, natural gas liquids, and refined products. Gibson transports hydrocarbons by utilizing its integrated network of terminals, pipelines, storage tanks, and truck fleet located throughout western Canada and the United States. Gibson is also involved in the processing, blending and marketing of hydrocarbons, provision of water disposal and oilfield waste management services and is the second largest retail propane distribution company in Canada. For more information, please visit www.gibsons.com.
GT Logistics LLC is the designer, developer and operator of the GT OmniPort in Port Arthur, Texas, a multi-modal industrial park and liquids terminal offering rail, barge, truck, pipeline and deepwater ship transloading services to tenants and owners of facilities at its 1,100 acre rail and barge terminal and its 20 acre deepwater dock. For more information, please visit www.gtomniport.com.
Certain statements contained in this news release constitute forward-looking information and statements (collectively, "forward-looking statements") including but not limited to statements concerning the formation of the proposed Joint Venture, the development of the storage terminal and management's expectations with respect to the business and financial prospects and opportunities that the formation of the Joint Venture and the development of the storage terminal may provide Gibson. These statements relate to future events or Gibson's future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words ''anticipate'', ''plan'', ''contemplate'', ''continue'', ''estimate'', ''expect'', ''intend'', ''propose'', ''might'', ''may'', ''will'', ''shall'', ''project'', ''should'', ''could'', ''would'', ''believe'', ''predict'', ''forecast'', ''pursue'', ''potential'' and ''capable'' and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. In addition, this news release may contain forward-looking statements and forward-looking information attributed to third party industry sources. Gibson does not undertake any obligations to publicly update or revise any forward looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, the proposed Joint Venture not being formed at all, the failure of Gibson and GTL to obtain the necessary regulatory and third party approvals required in order to develop the storage terminal and the risks and uncertainties described in "Forward-Looking Statements" and "Risk Factors" included in Gibson's Annual Information Form dated March 6, 2012 as filed on SEDAR and available on Gibson's website at www.gibsons.com.
SOURCE Gibson Energy Inc.
Image with caption: "GTL Crude Oil Transloading Facility (CNW Group/Gibson Energy Inc.)". Image available at: http://photos.newswire.ca/images/download/20120828_C2195_PHOTO_EN_17303.jpg
Image with caption: "GTL Crude Oil Barge Loading Facility (CNW Group/Gibson Energy Inc.)". Image available at: http://photos.newswire.ca/images/download/20120828_C2195_PHOTO_EN_17304.jpg