CALGARY, ALBERTA–(Marketwired – Nov. 12, 2015) – Veresen Inc. (“Veresen”) (TSX:VSN) is pleased to announce it will build and operate a new wholly-owned ethane storage facility located near Burstall, Saskatchewan, approximately 20 kilometres north of the Empress natural gas liquids (NGL) complex. The salt cavern facility will have capacity to store approximately 1 million barrels of ethane, and will be connected via pipeline to Veresen’s Alberta Ethane Gathering System. The expected capital cost of the storage facility and related infrastructure is approximately $140 million.
“Veresen is committed to building the best connected network of natural gas and NGL infrastructure within our geographic footprint and delivering on this opportunity demonstrates our strategy in action,” said Don Althoff, President and CEO of Veresen. “The Burstall facility will provide our customers with valuable operational storage as ethane imports to Empress from the North Dakota Bakken grow, and we are excited to add another project to our portfolio of secured growth opportunities.”
Veresen and NOVA Chemicals Corporation (“NOVA”) have entered into an agreement where NOVA will use the majority of the storage capacity under a 20-year arrangement. Subject to final regulatory approvals, the facility is expected to be in service in the second half of 2018. Once operational, Veresen expects the storage facility will contribute annual EBITDA in the range of $15 million to $18 million, comprised largely of fixed payments which are not dependent on utilization levels.
About Veresen Inc.
Veresen is a publicly-traded dividend paying corporation based in Calgary, Alberta that owns and operates energy infrastructure assets across North America. Veresen is engaged in three principal businesses: a pipeline transportation business comprised of interests in the Alliance Pipeline, the Ruby Pipeline and the Alberta Ethane Gathering System; a midstream business which includes an ownership interest in Aux Sable, a world-class natural gas liquids (NGL) extraction facility near Chicago and other natural gas and NGL processing energy infrastructure, and a partnership interest in Veresen Midstream which owns midstream assets in western Canada; and a power business comprised of a portfolio of assets in Canada. Veresen is also developing Jordan Cove LNG, a six million tonne per annum natural gas liquefaction facility proposed to be constructed in Coos Bay, Oregon, and the Pacific Connector Gas Pipeline. In the normal course of business, Veresen regularly evaluates and pursues acquisition and development opportunities.
Veresen’s Common Shares, Cumulative Redeemable Preferred Shares, Series A, Series C, Series E trade on the Toronto Stock Exchange under the symbols “VSN”, “VSN.PR.A”, “VSN.PR.C” and “VSN.PR.E”, respectively. For further information, please visit www.vereseninc.com.
Certain information contained herein relating to, but not limited to, Veresen and its businesses and the offering of the notes, constitutes forward-looking information under applicable securities laws. All statements, other than statements of historical fact, which address activities, events or developments that Veresen expects or anticipates may or will occur in the future, are forward-looking information. Forward-looking information typically contains statements with words such as “may”, “estimate”, “anticipate”, “believe”, “expect”, “plan”, “intend”, “target”, “project”, “forecast” or similar words suggesting future outcomes or outlook. Forward-looking statements in this news release include, but are not limited to, the estimated capital cost, the projected in-service date and the projected EBITDA of the Burstall ethane storage facility. Readers are also cautioned that such additional information is not exhaustive. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these factors are independent and management’s future course of action would depend on its assessment of all information at that time. Although Veresen believes that the expectations conveyed by the forward-looking information are reasonable based on information available on the date of preparation, no assurances can be given as to future results, levels of activity and achievements. Undue reliance should not be placed on the information contained herein, as actual results achieved will vary from the information provided herein and the variations may be material. Veresen makes no representation that actual results achieved will be the same in whole or in part as those set out in the forward-looking information. Furthermore, the forward-looking statements contained herein are made as of the date hereof, and Veresen does not undertake any obligation to update publicly or to revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable laws. Any forward-looking information contained herein is expressly qualified by this cautionary statement.
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Director, Investor Relations