Gibson Energy teams with Suncor Energy for biofuel blending and loading expansion

In Canada, Gibson Energy Inc. announced it has entered into a long-term agreement with Suncor Energy Inc. for services at the Company’s Edmonton Terminal and the related sanction of an expansion to support the blending and loading of third party biofuels for Suncor. 

As part of the agreement, all existing assets at the Edmonton Terminal currently contracted with Suncor will be combined into a single Master Services Agreement (“MSA”). Under the MSA, Gibson will receive a fixed-fee for the use of its assets, which currently represent the majority of third-party revenues at the Edmonton Terminal.   The MSA also contemplates the potential future sanction of additional infrastructure at the Edmonton Terminal on a similar fixed-fee basis under a 25-year term.

Gibson has sanctioned the construction of the Biofuels Blending Project at its Edmonton Terminal under a 25-year term. The additional infrastructure will be used to facilitate the storage, blending and transportation of renewable diesel. The project will contribute to at least half of Gibson’s 2021 growth capital expenditures being ESG positive.