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Encana JV sanctions C$195M investment in 2 Veresen Midstream projects

Veresen Midstream LP received sanctions from the Cutbank Ridge Partnership amounting to C$195 million for two liquids projects, Veresen Inc. announced.

The South Central liquids hub project would help Veresen's Montney gathering system accommodate development expected over the next years and is expected to begin service by the end of the second quarter of 2017. The Tower liquids hub project would offer lower-cost, more commercially flexible handling and storage of NGLs from the Sunrise, Tower and Saturn Phase II processing facilities.

The Tower liquids hub would also be capable of delivering NGLs into a third-party system, as well as handling NGLs trucked or connected by a future pipeline from a third party, according to a Dec. 28 news release.

"With the sanction of this additional capital, Veresen now has over [C]$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."

95% of Veresen's recently released capital program for 2017 has been allocated for Veresen Midstream, in particular for the Tower, Sunrise and Saturn Phase II facilities.

Cutbank Ridge is a joint venture of Encana Corp. and a subsidiary of Mitsubishi Corp.