Gibson Energy Inc. says that its Board of Directors has approved a 2016 growth capital expenditure budget ranging between $200 million and $300 million. Additionally, the Board of Directors approved $50 million allocated to upgrade and replacement capital expenditures.
"Following a disciplined budgeting process, the lower end of Gibsons' 2016 growth capital expenditure plan will be solely focused on the multi-year expansion projects that are currently underway in our Terminals & Pipelines segment. These projects represent our highest risk-adjusted return opportunities and are largely underpinned by long-term, take-or-pay contracts," said Stewart Hanlon, Gibsons' President and Chief Executive Officer. "The higher end of the growth capital spending range includes incremental, but not yet contracted, opportunities in Terminals & Pipelines and only a modest allocation to projects within our other business segments that are discretionary in nature."