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CALGARY, March 24, 2014 /CNW/ - Veresen Inc. ("Veresen" or "the Company") (TSX: VSN) today announces
that it has received a conditional order from the U.S. Department of
Energy ("DOE") to export liquefied natural gas ("LNG") from the
proposed Jordan Cove LNG export terminal to those countries that do not
have Free Trade Agreement ("FTA") status with the United States.
Under the DOE order received today, Jordan Cove is permitted to export
natural gas to meet Jordan Cove's initial LNG capacity production of 6
million tonnes per annum (mtpa), with commercial LNG production
targeted for early 2019. The DOE authorization is for a term of 20
years, commencing on the date of first export.
Typically referred to as non-FTA countries, this includes numerous LNG consuming markets throughout Asia Pacific
and South America. Among significant LNG importing countries, only
South Korea, Singapore and Chile have FTA status with the United
States. In late 2011, Jordan Cove LNG received DOE authorization to
export up to 9 mtpa of LNG to those countries that currently have such
"Receipt of DOE approval to export to U.S. non-FTA countries completes a
key development milestone for Jordan Cove and brings us one step closer
to making a final investment decision," said Don Althoff, President and
CEO of Veresen. "The next critical path item from a regulatory
perspective is authorization from the U.S. Federal Energy Regulatory
Commission to commence construction."
Don Althoff added, "The Jordan Cove LNG project will provide significant
job creation, economic stimulus and tax benefits to the State of Oregon
and we look forward to delivering these benefits."
DOE Import Authorization
On March 20, 2014, Veresen received authorization from the DOE to import
natural gas from Canada to serve the proposed Jordan Cove LNG
terminal. Consistent with the earlier approval from Canada's National
Energy Board to export gas supplies from Canada to the United States,
the DOE import permit allows for up to 1.55 billion cubic feet per day
of natural gas to be available for export via the Jordan Cove terminal
for a 25-year period. This amount of natural gas would meet Jordan
Cove's ultimate capacity of 9 mtpa.
Jordan Cove's advantageous location leverages existing North American
pipeline infrastructure and will provide access to substantial markets
for both Canadian and United States Rockies natural gas producers.
In addition to the non-binding Heads of Agreement ("HOA") announced in
October 2013, Veresen's project level subsidiaries have further entered
into a number of other HOAs with large-scale, prospective customers,
including various emerging and traditional LNG buyers located
throughout the Asia Pacific region.
The non-binding, non-exclusive arrangements set out the indicative
commercial terms of the subsequent, binding, Liquefaction Tolling
Services Agreement ("LTSA") with the Jordan Cove LNG terminal, and the
Transportation Service Precedent Agreement ("TSPA") with the Pacific
Connector Gas Pipeline that will transport natural gas supplies to the
The total volume of LNG capacity requested under the various HOAs
exceeds the 6 mtpa capacity of the proposed LNG terminal. Veresen is
pursuing the negotiation of binding LTSA and TSPA agreements with
prospective HOA customers. The target objective, within 2014, is to
execute binding agreements with an optimal subset of the HOA prospects,
with binding commercial agreements being in place for all of Jordan
Cove's initial capacity of 6 mtpa.
The Jordan Cove LNG project is owned by Jordan Cove Energy Project L.P.,
a subsidiary of Veresen, and Pacific Connector Gas Pipeline, LP, which
owns the Pacific Connector pipeline project, is owned equally by a
subsidiary of Veresen and a subsidiary of The Williams Companies, Inc.
The project level entities each have a current application before the
Federal Energy Regulatory Commission in the United States for a license
to construct their respective facilities.
Conference Call and Webcast
Veresen will host a conference call and webcast at 1:30 pm MT and 3:30
pm ET on March 24, 2014 to discuss this important milestone.
Dial-in: 1 (888) 231-8191 or 1 (647) 427-7450
Conference ID 18994327
The link to the conference call webcast is available on Veresen's
website on the homepage or by selecting "Invest" and then "Events &
A replay of the call will be available at approximately 3:30 pm MT (5:30
pm ET) on March 24, 2014 by dialing 1 (855) 859-2056 and 1 (416)
849-0833. The access code is 18994327, followed by the pound sign.
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 gas gathering and processing complex, and
other natural gas and NGL processing energy infrastructure; and a power
business with a portfolio of assets in Canada and the United States.
Veresen is actively developing a number of greenfield projects,
including Jordan Cove LNG located in Coos Bay, Oregon, and regularly
evaluates and pursues acquisition and development opportunities.
Veresen's common shares, Series A preferred shares, Series C 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", "VSN.PR.C" 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, the Jordan Cove LNG facility, the timing and execution of
binding Liquefaction Tolling Services Agreements with the Jordan Cove
LNG terminal, and the Transportation Service Precedent Agreements with
the Pacific Connector Gas Pipeline; the commencement of commercial
operations of the project; and the benefits that Jordan Cove LNG will
bring to the State of Oregon. 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
SOURCE: Veresen Inc.
For further information:
Director, Investor Relations
Phone: (403) 213-3633