Veresen Sees Plenty of Spending Opportunities in 2017

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Researched by Industrial Info Resources (Sugar Land, Texas)--Solid results from its take-or-pay and fee-for-service contracts has led energy-infrastructure developer Veresen (TSX:VSN) (Calgary, Alberta) to put its capital program for 2017 at between $475 million and $525 million. The company also expects two of its planned processing facilities to be placed into service toward the end of the year. Industrial Info is tracking $8.55 billion in active projects involving Veresen.

Veresen's largest project, by far, is the 6 million-metric-tonne-per-year Jordan Cove LNG plant and terminal project in Coos Bay, Oregon, which is tied up in regulatory limbo. But Veresen's Board of Directors said in a press release that they have approved a 2017 project development budget of about $30 million for the terminal and a related pipeline. For more information, see Industrial Info's project report and December 5, 2016, article - Mini LNG Plant Projects Persevere in North America.

Veresen said its focus will remain on securing additional agreements for the long-term sale of natural gas liquefaction capacity at the export terminal, as well as obtaining the requisite regulatory permits for both the terminal and the pipeline.

In addition to Jordan Cove, Industrial Info is tracking two large natural gas-processing projects that are under construction in British Columbia: the $715 million Tower plant near Taylor, and the $700 million Saturn plant near Dawson Creek. The Tower project involves building a train that can process 200 million standard cubic feet per day of cryogenic natural gas and 20,000 barrels per day (BBL/d) of NGL, while the Saturn project involves building a plant with the capacity to process 400 million standard cubic feet per day of natural gas.

The Tower facility will draw condensate from northeastern British Columbia's Montney Formation, and the Saturn facility will draw specifically from Montney's Saturn gas field. Veresen said earlier this year that it plans to deliver the product to both domestic and, potentially, international markets via planned export facilities on the Pacific coast and its existing TransCanada NOVA Gas Transmission System, according to Alaska Highway News. For more information, see Industrial Info's project reports on the Tower and Saturn projects.

"Veresen has delivered very strong operational and financial results over the course of 2016," said Don Althoff, President and CEO of Veresen, in the press release. "We expect to sustain this momentum throughout 2017."

Veresen also is at work on the $140 million Burstall ethane storage project near Burstall, Saskatchewan. The company plans to drill a pair of underground salt caverns to store 1 million barrels of liquefied ethane with Nova Chemicals Corporation (Calgary, Alberta) using most of the storage capacity under a 20-year arrangement. For more information, see Industrial Info's project report.

Veresen said in its press release that it will advance the construction of Burstall in 2017, with $20 to $30 million of capital investment anticipated through the year. The company expects Burstall to be in service by late 2018.

Industrial Info also is tracking $24 million in planned turnarounds through 2019 at various Veresen facilities in Canada.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.