Canada-based Gibson Energy Inc. said Oct. 16 that it plans to expand the tankage at its Hardisty oil storage terminal by 1 million barrels. The expansion is supported by a long-term agreement with an oil sands customer, the company said.

As part of the third phase of development at the terminal, the expansion will include the construction of two new 500,000-barrel tanks that are expected to be in service by the first quarter of 2020. In total, the three phases currently under construction will add seven new tanks, representing an incremental 3.1 million barrels of storage and an approximately 35% expansion at the facility.

"With nearly a half-billion dollars of sanctioned growth capital relative to an annual target of $150 [million] to $200 million, Gibson has secured the projects required to exceed our 10% growth target through to 2020," Gibson President and CEO Steve Spaulding said. "We also remain in discussions with several existing and potential customers regarding their needs for additional tankage and continue to expect we will sanction two to four tanks per year over the medium-term."

Gibson's operations are focused around its core terminal assets at Hardisty and Edmonton, Alberta, and also include the Moose Jaw Facility and an infrastructure in the U.S.