Gibson, Baytex Partner on Pembina Duvernay Infrastructure Deal
(P&GJ) — Gibson Energy and Baytex Energy have formed a strategic partnership to develop midstream infrastructure in the Pembina Duvernay, securing a long-term take-or-pay agreement.
Under the 10-year agreement, Gibson will invest $50 million in infrastructure to support Baytex’s development in the region. Baytex will construct and operate the facilities, with completion expected by Q4 2025.
"Building on our long-standing relationship, this strategic partnership leverages our infrastructure expertise, differentiated services and superior connectivity at our Edmonton terminal to create mutual value," said Curtis Philippon, Gibson’s President and CEO. "Moving forward, we see the opportunity for further expansion of our partnership with Baytex to support their development plans and potential to work with other customers to explore additional purpose-built solutions which increase long-term demand for services at our core terminal assets."
The deal expands Gibson’s liquids infrastructure footprint, increases committed volumes to its Edmonton terminal, and enhances cash flow stability through an area dedication agreement.
“We are excited to partner with Gibson and progress the development of our Pembina Duvernay asset, which includes the construction and operation of certain midstream infrastructure,” said Eric T. Greager, Baytex’s President and CEO. “This partnership allows us to leverage Gibson's liquids infrastructure and midstream expertise while maintaining operatorship.”
Construction is already underway, with completion scheduled for late 2025.
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