CALGARY, ALBERTA–(Marketwired – July 6, 2015) – Veresen Inc. (“Veresen” or the “Company”) (TSX:VSN) announced today that it will be participating in the TD Securities Calgary Energy Conference on July 8, 2015 in Calgary, Alberta. At the conference, Don Althoff, President and Chief Executive Officer, will provide an update on Veresen’s corporate activities and growth opportunities. Elizabeth (Betsy) Spomer, Executive Vice President of Veresen and President and Chief Executive Officer of Jordan Cove LNG LLC, will make a keynote presentation which will discuss the global LNG business and provide an update on the Jordan Cove LNG project. Presentations from this conference will be available on the Company’s website at www.vereseninc.com.
Along with these presentations, Veresen is providing updates on two of the Company’s key growth initiatives.
Veresen Midstream Limited Partnership (“Veresen Midstream”)
Development activity continues to be strong within Veresen Midstream’s footprint in the Dawson Creek area of British Columbia, driven by very low supply costs for Montney gas production in the region.
Veresen Midstream’s 200 million cubic feet per day (“MMcf/d”) Saturn compressor station was placed in service in early June 2015, ahead of schedule and significantly under budget at an anticipated final cost of approximately $155 million. The Cutbank Ridge Partnership (“CRP”), a partnership between Encana Corporation (“Encana”) and Cutbank Dawson Gas Resources Ltd., is proceeding to a final investment decision for the 400 MMcf/d Sunrise gas plant in the summer of 2015 and for the 200 MMcf/d Tower gas plant in the fall of 2015. A total of approximately $170 million has been invested in these two projects as of June 30, 2015.
CRP has also proposed a project to Veresen Midstream to add an incremental 200 MMcf/d of compression and 400 MMcf/d of refrigeration capacity to the Saturn compressor site, effectively converting this site into a 400 MMcf/d gas plant. A final investment decision on this project could be made late in 2015 or early 2016, with an in-service date in mid-2018.
These projects, along with the build-out of associated gathering pipelines and Veresen Midstream’s acquisition of infrastructure from Encana and CRP earlier this year, are expected to collectively represent investments in excess of $3 billion over the next three years.
The Board of Directors of Veresen Midstream is pleased to announce today the appointment of Mr. David Fitzpatrick as President and Chief Executive Officer of Veresen Midstream.
Mr. Fitzpatrick brings over 25 years of experience in the upstream oil and gas industry where he served in leadership, management, planning and technical roles for several public energy companies. Mr. Fitzpatrick was Co-founder, President and Chief Executive Officer of Shiningbank Energy, and most recently served as Interim Chief Executive Officer of Lone Pine Resources. Mr. Fitzpatrick has a depth of experience at the board level, having served on the Board of Directors of Eagle Energy, PrimeWest Energy, Shiningbank Energy, and Twin Butte, among others. Mr. Fitzpatrick has also served on the Board of Governors of the Canadian Association of Petroleum Producers is a member of APEGA and the Society of Petroleum Engineers.
“We are pleased to welcome David to Veresen Midstream where he will help accelerate the growth of our midstream business,” said Don Althoff, President and CEO of Veresen. “David has a wealth of industry experience and brings with him a strong producer mindset. This skillset will be highly valuable as Veresen Midstream focuses its efforts on creating innovative win-win solutions for both existing and new customers.”
Jordan Cove LNG
With the recent update in the Federal Energy Regulatory Commission’s (“FERC”) schedule for environmental review, which moved the date for issuing the final Environmental Impact Statement to September 30, 2015, Veresen has reviewed and updated its project schedule for its key work streams for the Jordan Cove LNG and Pacific Gas Connector Pipeline projects.
Based on the new FERC schedule, which provides for a final FERC certificate for the projects on or before December 29, 2015, and the status of the projects’ other State of Oregon permits, Veresen expects to obtain a FERC “Notice to Proceed” in mid-2016, leading to a final investment decision thereafter. Similarly, on the commercial front, Veresen expects that negotiations currently underway with potential customers will extend through to the end of 2015 and possibly into early 2016.
“We continue to see strong buyer interest in the Jordan Cove LNG project based on its locational advantage, competitive cost structure and access to both western Canadian and Rockies gas supply basins,” said Don Althoff. “Veresen is taking advantage of the revised FERC schedule by continuing to optimize project costs and schedule, and value engineering opportunities, as well as leveraging the lower oil price environment and slowdown in global energy projects.”
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, 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 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 and Cumulative Redeemable Preferred Shares, Series A, Series C and 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 amount of investment in, and the timing of the final investment decision and construction of, Veresen Midstream infrastructure projects; the timing of, and our ability to successfully obtain regulatory approvals for the construction of the Jordan Cove LNG facility and the Pacific Connector Gas Pipeline and secure offtake customers. 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.
Director, Investor Relations