The Natural Gas Storage Facility in Mt. Hayes, B.C., can keep 1.5 billion cubic feet of natural gas in compressed liquid form in a 12-storey storage tank.CHAD HIPOLITO/The Globe and Mail
Veresen Inc. is raising money for a proposed Oregon liquefied natural gas project a day after the U.S. Department of Energy approved its export application.
Veresen, the Calgary-based energy infrastructure and processing company, is going to the market for up to $285-million in a bought deal led by Bank of Nova Scotia, TD Securities Inc. and CIBC World Markets.
Under the agreement, Veresen is issuing 15 million shares at $16.50 apiece. It could issue another 2.25 million shares if an overallotment option is exercised.
The company said it will use the proceeds to fund development costs of its Jordan Cove LNG venture, as well as 2014 capital spending and debt repayment.
Jordan Cove will rely heavily on natural gas supplies to be transported to Oregon from Western Canada. Plans also call for a new 370-kilometre pipeline, co-owned by Veresen and Williams. Cos. Inc. of Tulsa, Okla., to bring in gas from suppliers in Wyoming and Colorado.
The project still requires approval by the U.S. Federal Energy Regulatory Commission.
Jeffrey Jones