04:49 PM EDT, 03/11/2025 (MT Newswires) -- Gibson Energy ( GBNXF ) and Baytex Energy ( BTE ) after trade Tuesday said they will form a strategic partnership in Alberta's Pembina Duvernay shale field and a long term 'take-or-pay' agreement

The partnership will see oil-infrastructure company Gibson transport oil from Baytex's holdings in the area to its Edmonton tank hub support of the development of Baytex's growing Pembina Duvernay asset.

The companies said the agreement creates a strategic partnership to develop infrastructure and expands Gibson's liquids infrastructure footprint. It also supports Baytex's ongoing development in the Pembina Duvernay and provides committed market access.

"Building on our long-standing relationship, this strategic partnership leverages our infrastructure expertise, differentiated services and superior connectivity at our Edmonton terminal to create mutual value," said Gibson chief executive Curtis Philippon. "Moving forward, we see the opportunity for further expansion of our partnership with Baytex to support their development plans and potential to work with other customers to explore additional purpose-built solutions which increase long-term demand for services at our core terminal assets."

Under the initial 10-year agreement, Gibson will invest approximately $50 million of capital expenditures and "receive an area of dedication and established return on investment that is aligned with Gibson's target build multiple." Baytex will construct the infrastructure and have operating responsibility for the term of the agreement. Construction has commenced and is expected to be completed by year end.

Gibson shares closed up $0.13 to $21.51 on the Toronto Stock Exchange, while Baytex rose $0,09 to $2.93.