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 visit www.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.
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 commercial terms of the agreement with ITOCHU Corporation; and the design capacity of the Jordan Cove LNG project. 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.