Veresen Provides Update on Commercial Activity for its Jordan Cove LNG Project
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION
IN THE UNITED STATES/
CALGARY, Oct. 7, 2013 /CNW/ - Veresen Inc. ("Veresen" or the "Company") (TSX:
VSN) provided today an update of commercial activity related to the Company's
proposed Jordan Cove liquefied natural gas (LNG) export facility located in
Coos Bay, Oregon, and for the Pacific Connector Gas Pipeline (Pacific
Connector), which will transport natural gas supplies to the Jordan Cove LNG
In what is expected to be a series of commercial transactions resulting from
discussions with several prospective customers, Veresen is pleased to advise
that its project level subsidiaries have executed initial customer expressions
of interest by entering into non-binding arrangements, referred to as "Heads
of Agreement" (HOA). The HOA sets out indicative commercial terms of the
subsequent, binding, Liquefaction Tolling Services Agreement (LTSA) and
Pipeline Service Agreement (PSA), which will be the subject of further
negotiations between the parties.
Independent HOAs were recently finalized with three, large-scale prospective
customers with head office locations in Indonesia, India, and an Eastern Asia
country. The volume of LNG capacity requested under each HOA either meets or
exceeds a minimum 25% capacity threshold amount, under the initial six million
metric tons per annum LNG development offering by Jordan Cove and Pacific
Connector. The contract term under each agreement is proposed to be 25 years,
with extension rights.
"Signing these initial HOAs with prospective customers for liquefaction
tolling services is an important commercial milestone in the development of
our Jordan Cove LNG project," said Don Althoff, President and CEO of Veresen.
"We've gained excellent traction in our commercial discussions and we continue
to evaluate opportunities with several highly-respected prospective customers."
Veresen expects to execute a number of HOAs with prospective customers, which
will then lead to advanced customer negotiations under long-term LTSA and PSA
Jordan Cove Energy Project L.P. is a subsidiary of Veresen Inc., and Pacific
Connector Gas Pipeline, L.P. is a limited partnership owned equally by a
subsidiary of Veresen and a subsidiary of Williams (WMB). The project level
subsidiaries have current applications before the Department of Energy and the
Federal Energy Regulatory Commission in the United States.
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 two pipeline systems, the
Alliance Pipeline and the Alberta Ethane Gathering System; a midstream
business which includes ownership interests in a world-class natural gas
liquids extraction facility near Chicago, the Hythe/Steeprock complex, and
other natural gas and NGL processing energy infrastructure; and a power
business with renewable and gas-fired facilities and development projects in
Canada and the United States, and district energy systems in Ontario and
Prince Edward Island. Veresen is actively developing a number of greenfield
projects and, in the normal course of its business, regularly evaluates and
pursues acquisition and development opportunities.
Veresen's common shares, Series A Preferred Shares and 5.75% convertible
unsecured subordinated debentures, Series C due July 31, 2017 are listed on
the Toronto Stock Exchange under the symbols "VSN", "VSN.PR.A" and VSN.DB.C",
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 timing
of, and our ability to successfully obtain regulatory approvals for, the
construction and operation of, and our ability to execute heads of agreement
or liquefaction tolling services agreements with prospective customers of, the
Jordan Cove LNG facility and the Pacific Connector Gas Pipeline. 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.
SOURCE Veresen Inc.
Dorreen Miller Director, Investor Relations Phone: (403) 213-3633
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CO: Veresen Inc.
-0- Oct/07/2013 20:50 GMT
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