CALGARY, ALBERTA–(Marketwired – Dec. 28, 2016) – Veresen Inc. (“Veresen”) (TSX:VSN) today announced the sanction of $195 million ($93 million net to Veresen) in new capital projects at Veresen Midstream.
“With the sanction of this additional capital, Veresen now has over $1.4 billion of projects under construction,” said Don Althoff, President and CEO of Veresen. “We expect these capital projects to deliver incremental per share growth as Veresen remains fully funded without the need to access capital markets. As Veresen Midstream’s capital projects come into service, the significant increase in cash flow will reduce Veresen’s leverage and bolster our financial flexibility to fund new growth opportunities generated from our strong footprint in the heart of the Montney play.”
Two new projects have been sanctioned by the Cutbank Ridge Partnership (“CRP”) to facilitate ongoing development plans while also minimizing total infrastructure costs and surface footprint. The South Central Liquids Hub project has been sanctioned to allow the existing gathering system in the area to handle development anticipated over the next several years and is expected to be in service by the end of the second quarter of 2017. The South Central Liquids Hub can be expanded in the future to meet CRP’s long-term liquids handling needs as well as provide services to third party producers in the area.
The Tower Liquids Hub has also been sanctioned to provide a lower overall cost and more commercially flexible solution for the handling and storage of NGLs produced at the Sunrise, Tower and Saturn Phase II processing facilities. The project includes infrastructure to deliver the NGLs into a third party system. The Tower Liquids Hub is expected to be in service in the third quarter of 2017. Part of the Tower Liquids Hub will include capacity to handle third party NGLs that could be either trucked in or connected directly by a future pipeline.
Both the South Central Liquids Hub and the Tower Liquids Hub are governed by the Dawson Midstream Service Agreement, which is in place for the next 28 years.
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 a partnership interest in Veresen Midstream Limited Partnership, which owns assets in western Canada, and an ownership interest in Aux Sable, which owns a world-class natural gas liquids (NGL) extraction facility near Chicago, and other natural gas and NGL processing energy infrastructure; 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 associated 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, Cumulative Redeemable Preferred Shares, Series C, and Cumulative Redeemable Preferred Shares, 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.