April 08, 2016 12:38 PM Eastern Daylight Time
CALGARY, Alberta–(BUSINESS WIRE)–Veresen Inc. (“Veresen”) (TSX:VSN) is pleased to announce that it has reached preliminary agreement with respect to certain key commercial terms with ITOCHU Corporation (“ITOCHU”) for the long-term sale of natural gas liquefaction capacity at the Jordan Cove LNG facility. Veresen is developing the Jordan Cove LNG facility in the International Port of Coos Bay in Oregon, USA.
The preliminary agreement signed today contemplates the purchase by ITOCHU of 1.5 million tonnes per annum of natural gas liquefaction capacity for an initial term of 20 years. This agreement is subject to the negotiation of a mutually acceptable, definitive liquefaction tolling agreement, which Veresen and ITOCHU will continue to work together to conclude.
In conjunction with the agreement between Veresen and JERA Co., Inc., announced on March 22nd, Veresen has now concluded key commercial terms in respect of at least 3 million tonnes per annum of natural gas liquefaction capacity. Negotiations for the remaining liquefaction capacity are ongoing with other parties.
With approximately 130 bases in 65 countries, ITOCHU engages in domestic trading, import/export, and overseas trading of various products such as textile, machinery, metals, minerals, energy, chemicals, food, information and communications technology, realty, general products, insurance, logistics services, construction, and finance, as well as business investments in Japan and overseas. ITOCHU’s Energy Division handles trading of general energy-related products, including crude oil, petroleum products, LPG, LNG, natural gas, and electricity as well as promoting related projects. The Energy Division also promotes exploration, development and production of oil & gas projects.
“This is the second major customer agreement for the Jordan Cove LNG project and it represents further proof of the market support for this project,” said Don Althoff, President and CEO of Veresen. “ITOCHU is a leading global energy company and we are pleased to have them as an additional foundation customer for the Jordan Cove LNG project.”
The Jordan Cove LNG project is expected to have an initial design liquefaction capacity of approximately 6.0 million tonnes per annum, or approximately 1 billion cubic feet of natural gas per day. For further information about the Jordan Cove LNG project, please visitwww.jordancovelng.com.
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, Cumulative Redeemable Preferred Shares, Series A and Cumulative Redeemable Preferred Shares, Series C 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.