/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 terminal.
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
"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 agreements.
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
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.
For further information:
Director, Investor Relations
Phone: (403) 213-3633