CALGARY, ALBERTA--(Marketwired - Jan. 14, 2014) - Canexus Corporation (TSX:CUS) ("Canexus" or the "Corporation") today announced that commissioning and ramp-up activities are continuing in the initial phase of its pipeline connected unit train expansion at the Corporation's North American Terminal Operations at Bruderheim. In the month of February we anticipate loading 14 unit trains or about 30,000 barrels per day.
Following a thorough assessment of this phase of the project, combined with the next staged expansion to further increase loading capacity including completion of the second pipeline connection to the Cold Lake pipeline system, the total estimated cost is anticipated to increase by approximately 40% over the previous estimate of $225 million. An extensive review of progress to date and remaining outstanding scope has been conducted with key project contractors and consultants. The incremental cost is anticipated to be funded from the Corporation's committed credit facilities.
Full project completion remains as earlier forecast for mid-2014. Contract discussions for the remaining available 30 to 40% of planned activity levels of 10.5 unit trains per week are progressing as previously communicated (on long-term, take-or-pay terms) and management continues to anticipate operating at that level commencing in October 2014.
"While we are disappointed with the revised cost estimate for the completion of this project, the Corporation has established a state-of-the-art facility at Bruderheim that is well positioned to deliver consistent, long-term value to shareholders, on a site that has additional attractive future development opportunities," said Gary Kubera, President and CEO.
This news release contains forward-looking statements and information relating to expected future events relating to Canexus and its subsidiaries, including with respect to the timing of the next staged expansion of the pipeline connected unit train facility at the Bruderheim Terminal and unit train shipments therefrom, the total estimated cost of the pipeline connected unit train facility and the funding therefor, anticipated operating levels for the pipeline connected unit train facility at the Bruderheim Terminal in 2014, and the attractiveness of additional future development opportunities at the Bruderheim site. The use of the words "expects", "anticipates", "continue", "estimates", "projects", "should", "believe", "plans", "intends", "may", "will" or similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including market and general economic conditions, future costs, treatment under governmental regulatory, tax and environmental regimes and the other risks and uncertainties detailed under "Risk Factors" in the Corporation's Annual Information Form filed on the Corporation's SEDAR profile at www.sedar.com. Management believes the expectations reflected in these forward-looking statements are currently reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Due to the potential impact of these factors, Canexus disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.
Canexus produces sodium chlorate and chlor-alkali products largely for the pulp and paper and water treatment industries. Our four plants in Canada and two at one site in Brazil are reliable, low-cost, strategically located facilities that capitalize on competitive electricity costs and transportation infrastructure to minimize production and delivery costs. Canexus also provides fee-for-service hydrocarbon transloading services to the oil and gas industry from its terminal at Bruderheim, Alberta. Canexus targets opportunities to maximize shareholder returns and delivers high-quality products to its customers. Canexus' common shares (CUS) and debentures (Series III - CUS.DB.A; Series IV - CUS.DB.B; Series V - CUS.DB.C) trade on the Toronto Stock Exchange. More information about Canexus is available at www.canexus.ca.