Gibson Energy Inc. continues to consider expansion plans for the Moose Jaw Facility. 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."

Tags: Gibson Energy Inc.