Gibson said Friday the new tank will be built on the company's eastern Hardisty lands along with two 400,000-barrel tanks announced in September 2012 and a 300,000-barrel tank, since expanded to 400,000 barrels, announced in April.
Work on the expansion is underway, with the various tanks expected to come into service between mid-2014 and early 2015.
"The addition of 1.7 million barrels of new storage capacity announced in the last seven months reaffirms the attractiveness of our Hardisty Terminal location for customers as they direct their current and future production to appropriate markets," said Rick Wise, Gibson's senior vice-president, operations.
"We continue to have positive discussions with several customers regarding the further build-out of strategic land positions at our Hardisty and Edmonton Terminals," he added.
As a result, the company expects near-term growth to be largely driven by long-term, fee-based contracted storage tank construction, expanded terminal services and construction of rail infrastructure to facilitate crude oil movements.
Gibson provides transportation, storage, blending, processing, marketing and distribution services to the oil industry.
It also provides emulsion treating, water disposal and oilfield waste management services in Canada and the United States and is the second largest retail propane distribution company in Canada.