KSU - Gibson Energy gets DRU up and running - ready to rail more oil from Alberta to the Gulf Coast

Gibson Energy (OTCPK:GBNXF) announced completion of the Company's diluent recovery unit ("DRU") after market close today. The DRU is contracted to take 50kb/d of Conoco's (NYSE:COP) oil sands production from Alberta to the Gulf via Canadian Pacific (NYSE:CP) and Kansas City Southern (NYSE:KSU) rail The project was undertaken in 2019, when oil offtake from the landlocked province was challenged; the primary economic driver of the DRU comes from reducing diluent volume in the train cars, so more undiluted bitumen can ship As the offtake situation has improved since 2019, the DRU is likely to be less profitable than planned; however, it will provide a level of insurance to the Province and Conoco in the event offtake challenges reemerge

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Gibson Energy gets DRU up and running - ready to rail more oil from Alberta to the Gulf Coast