CALGARY, July 3, 2012 /PRNewswire/ - Gibson Energy Inc. ("Gibson" or the "Company"), TSX: GEI, announced today that it continues to consider expansion plans for the Moose Jaw Facility ("the Expansion"). However, due to uncertainty around capital cost estimates and continued pressure on the construction industry in western Canada, the Company is not in a position to sanction the Expansion at this point.
"We will make a decision on the Expansion after we have more clarity in certain areas," said Stewart Hanlon, Gibson's President and Chief Executive Officer. "Although the latest capital cost estimate supports the Expansion economics, it is in the high end of our economical project range so we want to take the time to refine cost estimates, seek capital efficiencies and further assess construction conditions for large energy projects. As a result of preliminary engineering work completed for the Expansion, certain process improvements have been implemented at the Moose Jaw Facility during our recent maintenance turnaround that will increase capacity by up to 10% with limited capital spending. We will continue to pursue capacity improvement opportunities."
Gibson is one of the largest independent midstream energy companies in Canada and a major participant in the crude oil transportation business in the United States, and is engaged in the movement, storage, blending, processing, marketing and distribution of crude oil, condensate, natural gas liquids, and refined products. Gibson transports hydrocarbons by utilizing its integrated network of terminals, pipelines, storage tanks, and truck fleet located throughout western Canada and the United States. Gibson is also involved in the processing, blending and marketing of hydrocarbons, provision of water disposal and oilfield waste management services and is the second largest retail propane distribution company in Canada.
Certain statements contained in this news release constitute forward-looking information and statements (collectively, "forward-looking statements") including, but not limited to, the completion of the Expansion. These statements relate to future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words 'anticipate', 'plan', 'contemplate', 'continue', 'estimate', 'expect', 'intend', 'propose', 'might', 'may', 'will', 'shall', 'project', 'should', 'could', 'would', 'believe', 'predict', 'forecast', 'pursue', 'potential' and 'capable' and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. In addition, this news release may contain forward-looking statements and forward-looking information attributed to third party industry sources. The Company does not undertake any obligations to publicly update or revise any forward looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, the risks and uncertainties described in "Forward-Looking Statements" and "Risk Factors" included in the Company's Annual Information Form dated March 6, 2012 as filed on SEDAR and available on the Gibson website at www.gibsons.com.
SOURCE Gibson Energy Inc.