TERMINAL NEWS THE AMERICAS
TERMINAL NEWS: THE AMERICAS while the second tank will be leased to Gibson’s marketing segment under an intercompany agreement with the infrastructure segment.
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INSTITUTIONAL INVESTORS ACQUIRE CONTANDA Institutional investors advised by JP Morgan Asset Management have completed the acquisition of Contanda from the EQT Infrastructure II fund. This ownership transition will allow Contanda to continue to deliver on its key strategic business objective of doubling its bulk liquid terminal storage capability by 2022 while expanding into the bulk renewable and petrochemical markets and maintaining a leading market position in the refined products, renewable fuels, chemical, and agricultural commodity sectors. G.R. ‘Jerry’ Cardillo, CEO of Contanda, says: ‘This is an exciting time for Contanda. Our new partners recognise our long-term growth potential and are as enthusiastic as we are to further grow into the renewable and petrochemical markets.’ Read our exclusive interview with Contanda’s CEO on pages 48 & 49.
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GIBSON ENERGY ADDS ONE MILLION BARRELS TO HARDISTY TERMINAL Gibson Energy has sanctioned the construction of two new tanks comprising one million barrels of new tankage at its Hardisty Terminal. The two new 500,000-barrel tanks will be built at the Top of the Hill portion of the terminal. This represents an expansion of the fourth phase of development at the Top of the Hill, which will be in service by the end of 2020. One of the tanks is contracted to a new investment grade refining customer, PAGE 08
President and CEO Steve Spaulding says: ‘The sanction of two new tanks at the Top of the Hill will further increase our highquality, long-term infrastructure revenues and drive continued distributable cash flow per share growth. ‘We are also very pleased to welcome a new refining customer to the terminal, reflecting the importance of Hardisty to downstream players looking to secure heavy crude feedstocks from Western Canada. In addition, we remain in discussion for further tankage opportunities, leading to our confidence in our ability to continue to sanction tankage at a rate of two to four tanks per year in 2020, and beyond.’
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PEMBINA PIPELINE CLOSES ON KINDER MORGAN CANADA ACQUISITION Pembina Pipeline has completed the acquisition of Kinder Morgan Canada and the US portion of the Cochin Pipeline system for C$4.35 billion. Mick Dilger, Pembina’s president and CEO says: ‘We are pleased to have closed the highly strategic Kinder Morgan transaction earlier than originally expected, which will allow us to realise a full year of contribution from these assets in 2020. The newly acquired assets provide enhanced integration within our existing franchise, entrance
into exciting new businesses and clear visibility to creating long-term value for our shareholders. ‘Our teams will now focus on completing the integration activities and pursuing the $100 million of additional run-rate adjusted EBITDA we expect to realise over the coming years.’
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FREEPORT LNG STARTS OPERATIONS ON FIRST LIQUEFACTION TRAIN Freeport LNG has started commercial operations on its first liquefaction train, which is part of a multi-train liquefaction facility on Quintana Island near Freeport, Texas. Commercial operations on Freeport LNG’s Train 2 started in January. Construction on Freeport LNG’s Train 3 is nearly complete with commercial operations expected in May 2020. Michael Smith, founder, chairman and CEO of Freeport LNG, says: ‘This is a significant milestone for Freeport LNG and we now look forward to commencing commercial operations of Trains 2 and 3.’ Freeport’s three trains are expected to produce in excess of 15 mtpa and a fourth train is in development. The company has raised just over $1 billion for its Train 4 project which, combined with a contemplated bank facility, will provide the capital required for Train 4. A final investment decision for Train 4 is targeted for the first quarter of 2020. When it comes online, Freeport LNG will rank as the 8th largest LNG facility globally.