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Released June 16, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Gibson Energy Incorporated (Calgary, Alberta) is making a bold move in the U.S. oil-export market: Earlier this week, it agreed to buy full ownership of the South Texas Gateway oil terminal in Ingleside, Texas, from operator Buckeye Partners and its two co-owners, Marathon Petroleum Corporation (NYSE:MPC) (Findlay, Ohio) and Phillips 66 (NYSE:PSX) (Houston, Texas). Crucially, this will provide Gibson with much stronger access to product from the Permian Basin, which could significantly expand its presence in the North American market. Industrial Info is tracking $4 billion worth of active projects from Buckeye and more than $1 billion from Gibson.
The South Texas Gateway Terminal, which is located at the mouth of the Corpus Christi ship channel, completed construction and began oil-export operations in the summer of 2020. A major expansion, which increased its total capacity from 7.2 million to 8.6 million barrels across 20 tanks, was completed in the first quarter of 2021. This March, it averaged more than 670,000 barrels per day (BBL/d) of oil exports, a monthly record.
Buckeye, which operates the terminal, owns 50% of the facility, with Marathon and Phillips each owning 25%. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Terminals Plant Database can learn more from a detailed plant profile.
Gibson and Buckeye expect the transaction to close in the third quarter.
South Texas Gateway is one of just two Texas Gulf Coast terminals that can accommodate very large crude carrier (VLCC) vessels. Access to the Permian Basin will provide Gibson a "platform for future infrastructure growth with existing and new customers," according to the company. Gibson already operates several small-scale terminals and gathering systems throughout the Permian that deliver crude oil to local markets, but most of its existing, high-capacity operations are in Alberta and Saskatchewan.
Click on the image at right for a graph detailing Gibson Energy's active projects, by type.
Gibson already is attempting to expand capacity at some of its major Canadian operations, including its Edmonton West Petroleum Terminal in Edmonton, Alberta, where the company plans to add at least two new oil storage tanks that will be supported by a 15-year take-or-pay fee-based contract with Cenovus Energy Incorporated (NYSE:CVE) (Calgary). The additional storage spurred Gibson to raise its capital-expenditure outlook for full-year 2023 to as much as C$150 million (US$113.3 million), from its previous estimate of C$100 million to C$120 million (US$75.55 million to US$90.66 million). Subscribers can learn more from Industrial Info's detailed project report.
"With this sanction we currently have three tanks under construction at our Edmonton Terminal, representing 1.3 million barrels of storage," said Steve Spaulding, the chief executive officer of Gibson, in a press release. "Combined with other, smaller projects that have materialized across our asset base, we now have line of sight to reaching up to C$150 million in growth capital in 2023 and will also carry additional capital commitments into 2024."
Gibson also is considering major additions to one of its most valuable assets: The crude oil terminal in Hardisty, Alberta, which boasts a 13.5 million-barrel storage capacity, one of the highest in Western Canada. The Hardisty terminal's outgoing pipelines include Enbridge Incorporated's (NYSE:ENB) (Calgary) Mainline and Express pipelines, TC Energy's (NYSE:TRP) (Calgary) Keystone Pipeline, and Inter Pipeline Limited's (Calgary) Central Alberta system.
The company is seeking permits to add two diluent recovery units (DRUs), which separate diluent from bitumen; each would have a 50,000-BBL/d capacity, bringing the facility's total throughput to 150,000 BBL/d. Gibson also is considering the addition of two to four storage tanks, each with a 500,000-barrel capacity. Subscribers can read detailed reports on the Phase II and Phase III DRUs, and the proposed storage tank additions.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a list of detailed reports for active or proposed projects from Gibson, and click here for a list of detailed reports for active or proposed projects from Buckeye.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
The South Texas Gateway Terminal, which is located at the mouth of the Corpus Christi ship channel, completed construction and began oil-export operations in the summer of 2020. A major expansion, which increased its total capacity from 7.2 million to 8.6 million barrels across 20 tanks, was completed in the first quarter of 2021. This March, it averaged more than 670,000 barrels per day (BBL/d) of oil exports, a monthly record.
Buckeye, which operates the terminal, owns 50% of the facility, with Marathon and Phillips each owning 25%. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Terminals Plant Database can learn more from a detailed plant profile.
Gibson and Buckeye expect the transaction to close in the third quarter.
South Texas Gateway is one of just two Texas Gulf Coast terminals that can accommodate very large crude carrier (VLCC) vessels. Access to the Permian Basin will provide Gibson a "platform for future infrastructure growth with existing and new customers," according to the company. Gibson already operates several small-scale terminals and gathering systems throughout the Permian that deliver crude oil to local markets, but most of its existing, high-capacity operations are in Alberta and Saskatchewan.
Click on the image at right for a graph detailing Gibson Energy's active projects, by type.Gibson already is attempting to expand capacity at some of its major Canadian operations, including its Edmonton West Petroleum Terminal in Edmonton, Alberta, where the company plans to add at least two new oil storage tanks that will be supported by a 15-year take-or-pay fee-based contract with Cenovus Energy Incorporated (NYSE:CVE) (Calgary). The additional storage spurred Gibson to raise its capital-expenditure outlook for full-year 2023 to as much as C$150 million (US$113.3 million), from its previous estimate of C$100 million to C$120 million (US$75.55 million to US$90.66 million). Subscribers can learn more from Industrial Info's detailed project report.
"With this sanction we currently have three tanks under construction at our Edmonton Terminal, representing 1.3 million barrels of storage," said Steve Spaulding, the chief executive officer of Gibson, in a press release. "Combined with other, smaller projects that have materialized across our asset base, we now have line of sight to reaching up to C$150 million in growth capital in 2023 and will also carry additional capital commitments into 2024."
Gibson also is considering major additions to one of its most valuable assets: The crude oil terminal in Hardisty, Alberta, which boasts a 13.5 million-barrel storage capacity, one of the highest in Western Canada. The Hardisty terminal's outgoing pipelines include Enbridge Incorporated's (NYSE:ENB) (Calgary) Mainline and Express pipelines, TC Energy's (NYSE:TRP) (Calgary) Keystone Pipeline, and Inter Pipeline Limited's (Calgary) Central Alberta system.
The company is seeking permits to add two diluent recovery units (DRUs), which separate diluent from bitumen; each would have a 50,000-BBL/d capacity, bringing the facility's total throughput to 150,000 BBL/d. Gibson also is considering the addition of two to four storage tanks, each with a 500,000-barrel capacity. Subscribers can read detailed reports on the Phase II and Phase III DRUs, and the proposed storage tank additions.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a list of detailed reports for active or proposed projects from Gibson, and click here for a list of detailed reports for active or proposed projects from Buckeye.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
