Gibson Energy declares sale of U.S. environmental service businesses
Category: #world  By Saipriya Iyer  Date: 2018-03-20
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Gibson Energy declares sale of U.S. environmental service businesses

Gibson Energy Inc., a Canada based midstream service firm in the oil & gas sector, has sold its environmental service business in the U.S. for nearly USD 125 million. According to reliable sources, this strategic move is aimed towards further expanding Gibson’s oil & gas storage system in Canada.

Last year in August, the firm had apparently made an offer to sell its U.S. businesses, which was the part of its business strategy to use the funds for building new storage & pipeline units in Alberta and Saskatchewan costing nearly USD 205 million yearly.

The CEO of Gibson, Steve Spaulding, has stated that though its U.S. environmental service business was performing above par, it was unable to contribute to the core asset growth of the firm. He further added that the firm will use the revenue from the business disinvestments for funding its tank & pipeline infrastructure ventures in Canada. Apart from the sale of its environmental business unit, the firm has also decided to sell nearly four more business units in the next one and half years. At the investor day presentation in January this year, the key officials of Gibson stated that the company will also be selling its trucking operations across the U.S. and Canada.

According to reliable sources, the firm is forecast to collect nearly USD 375 million from the divestments. For the record, in February 2017, Gibson had sold its industrial propane business to Superior Plus LP for USD 412 million. The Canada based firm is also planning to invest in the oil storage & refining business in Canada, which includes a large storage unit in Alta linking the oil sands to the U.S. bound pipelines & railways. The firm has even stated that it will use the cash generated from the asset sale for paying its debt amount.



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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