Gibson Energy extends Gateway Terminal contract, sanctions Cactus II connection

Gibson Energy Inc., Calgary, has extended a long-term contract with an unnamed exploration and production company at its Gateway Terminal in South Texas and has sanctioned a connection to the Cactus II Pipeline. Terms were not disclosed.

The South Texas Gateway Terminal is a newly built crude oil export plant, operating a deep-water, open access marine terminal in Ingleside, Tex., at the mouth of the Corpus Christi Bay. It was officially placed in-service and loaded its first vessel in July 2020. In March 2021, the terminal completed the final construction phase of incremental storage facilities bringing the total terminalling capacity to 8.6 million bbl of crude oil across 20 tanks. The terminal is connected to Permian and Eagle Ford basins through multiple pipelines.

Cactus II Pipeline connection

Gibson Energy sanctioned a pipeline connection to the 26-in OD, 670,000-b/d Cactus II pipeline system pursuant to an interconnection agreement with Cactus II Pipeline LLC, a Plains All American Pipeline LP subsidiary. The system transports crude oil from Wink, Tex., in the Permian basin to Corpus Christi, Tex. The connection is expected to provide access to up to 700,000 b/d of incremental supply to customers, Gibson Energy said. Included in Gibson's 2024 capital budget is $20 million (Can.) in growth capital expected to be allocated to the connection.