Gibson Energy Extends Contract, Adds Cactus II Pipeline Connection

(P&GJ) — Gibson Energy Inc. has extended a long-term contract with a global exploration and production company at its Gateway Terminal in South Texas and approved a connection to the Cactus II Pipeline. The terms of the contract remain confidential.

“Since announcing the transformational acquisition of our Gateway Terminal a year ago, we have accomplished many milestones,” said Steve Spaulding, president and CEO. “Most notably, the multi-year extension of this existing contract with a valued customer, further enhances the high quality of our cash flows. This achievement also demonstrates the value our world-class, strategically located terminal provides to our customers through its connectivity to prolific basins and global markets.”

The company has sanctioned a pipeline connection to the Cactus II Pipeline pursuant to an interconnection agreement with Cactus II Pipeline LLC. The pipeline enhances the Gateway Terminal’s connectivity and will provide our customers with access to up to approximately 700,000 barrels per day of incremental supply. The company expects to deploy approximately $20 million in growth capital on the pipeline, which was included in the 2024 capital budget.

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