Veresen Inc.
TSX : VSN

Veresen Inc.

September 27, 2017 06:00 ET

Veresen Announces Start-Up of Tower Rich Gas Processing Plant and Expects Remaining Processing Plants Currently Under Construction In-Service by Year-End

CALGARY, ALBERTA--(Marketwired - Sept. 27, 2017) - Veresen Inc. ("Veresen") (TSX:VSN) is pleased to announce the successful start-up of the Tower rich gas processing plant on September 20, 2017, ahead of schedule and under budget. The Tower processing plant has the capacity to process 200 mmcf/d of natural gas, and is the first of three Veresen Midstream facilities that support Cutbank Ridge Partnership's ("CRP") condensate-focused growth plan in the Montney in the Dawson region of Northeast British Columbia.

The two remaining plants currently under construction are also ahead of schedule and under budget. The 400 mmcf/d Sunrise processing plant is expected to start-up by mid-October with throughput anticipated to ramp up throughout 2018. The Saturn processing plant is anticipated have one of its two 200 mmcf/d trains in-service by year-end, followed by the second train in the first half of 2018.

When all three facilities are operational, Veresen Midstream will have 1.5 bcf/d of gas processing capacity in operation and will be a dominant player in the core of the Montney, one of North America's most prolific and competitive liquids-rich resource plays.

The Dawson Midstream Service Agreement between CRP and Veresen Midstream provides Veresen Midstream with an attractive expected return on all invested capital through a 30-year, fee-for-service arrangement. Commercial terms include a production dedication to Veresen Midstream's gathering system for CRP's Montney natural gas production within a defined Area of Mutual Interest ("AMI").

Veresen Midstream, a joint venture with affiliates of Kohlberg Kravis Roberts & Co. L.P. in which Veresen holds an approximately 47% interest, has committed to fund up to $5 billion ($2.3 billion net to Veresen) of new infrastructure within the AMI to service CRP's planned production growth, including gas gathering pipelines, compression and processing facilities. Under the agreement, Encana manages the construction of new infrastructure within the AMI and will operate the gathering pipelines and compression and processing facilities on behalf of Veresen Midstream on a contracted basis. Veresen Midstream will assume operatorship of processing facilities at its option after an interim operating period. Veresen Midstream retains the flexibility to increase the capacity for new facilities in order to service third party gas volumes.

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 two principal businesses: a pipeline transportation business comprised of interests in the Alliance Pipeline, the Ruby Pipeline and the Alberta Ethane Gathering System, and a midstream business which includes a partnership interest in Veresen Midstream Limited Partnership which owns assets in western Canada, and an ownership interest in Aux Sable, which owns a world-class natural gas liquids (NGL) extraction facility near Chicago, and other natural gas and NGL processing energy infrastructure. Veresen is also developing Jordan Cove LNG, a 7.8 million tonne per annum natural gas liquefaction facility proposed to be constructed in Coos Bay, Oregon, and the associated Pacific Connector Gas Pipeline.

Veresen's Common Shares, Cumulative Redeemable Preferred Shares, Series A, Cumulative Redeemable Preferred Shares, Series C, and Cumulative Redeemable Preferred Shares, Series E 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.

Forward-looking Information

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 in-service dates of, and the timing of throughput ramp up for, the Sunrise and Saturn processing plants. 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.

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