Keystone XL ‘clarity’ boosts Gibson Energy diluent recovery project, says CEO

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CALGARY – The CEO of Gibson Vitality Inc. says “readability” about the way forward for the cancelled Keystone XL pipeline has prompted elevated curiosity from potential prospects in an enlargement of its diluent restoration unit now beneath building on the Hardisty crude transport hub in east central Alberta.

Diluent, a lightweight oil combined with sticky, heavy bitumen from the oilsands to permit it to circulate in a pipeline, makes up as a lot as a 3rd of the amount of blended bitumen or “dilbit’’ headed to U.S. refineries.

Gibson’s challenge is designed to take away the diluent from dilbit transported by pipeline to Hardisty, permitting switch of the concentrated heavy crude to railcars for transport south, whereas the diluent may be recycled to Alberta oilsands producers.

Gibson CEO Steve Spaulding says the primary 50,000-barrel-per-day part of its challenge is about to be in service by the center of this yr beneath a 10-year contract with ConocoPhillips Canada, which owns the Surmont thermal oilsands challenge in northern Alberta with French companion Complete S.A.

Gibson is partnering with US Growth Group, LLC, to assemble and function the ability which is to attach with a brand new US Growth off-loading terminal in Port Arthur, Texas, from which the oil will probably be distributed to refineries on the U.S. Gulf Coast.

Canadian crude-by-rail export numbers have been risky up to now yr, with shipments rising to a document 412,000 bpd in February 2020, then falling to an eight-year low of 39,000 bpd final July.

“I feel readability round KXL actually helps and discussions have picked up … as we proceed to speak to a number of producers and refiners,” stated Spaulding on an earnings convention name on Tuesday.

“The feedstocks … coming from Venezuela and Mexico proceed to say no. So these U.S. refineries want that heavy crude oil produced by Canada.’’

This report by The Canadian Press was first revealed Feb. 23, 2021.

Corporations on this story: (TSX:GEI)

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