CALGARY, A.B. — Veresen Inc. announced today that it has sanctioned $195 million in new capital projects at its Veresen Midstream subsidiary.
The South Central Liquids Hub project has been sanctioned to allow the company’s existing gathering system in the area to handle development anticipated over the next several years. The project is expected to be in service by the end of the second quarter of 2017.
The Tower Liquids Hub has also been sanctioned to provide a lower overall cost and more commercially flexible solution for the handling and storage of natural gas liquids that are produced at the Sunrise, Tower and Saturn Phase II processing facilities. The Tower Liquids Hub is expected to be in service in the third quarter of 2017.
“With the sanction of this additional capital, Veresen now has over $1.4 billion of projects under construction,” said Don Althoff, President and CEO of Veresen. “We expect these capital projects to deliver incremental per share growth as Veresen remains fully funded without the need to access capital markets. As Veresen Midstream’s capital projects come into service, the significant increase in cash flow will reduce Veresen’s leverage and bolster our financial flexibility to fund new growth opportunities generated from our strong footprint in the heart of the Montney play.”
Both the South Central Liquids Hub and the Tower Liquids Hub are governed by the Dawson Midstream Service Agreement, which is in place for the next 28 years.