Veresen

Veresen was a Calgary-based Canadian energy infrastructure company that operated across the midstream natural-gas and power sectors. It developed from Fort Chicago Energy Partners L.P., a publicly traded energy infrastructure business, and adopted the Veresen name as it broadened its portfolio beyond its original pipeline focus. The company was listed on the Toronto Stock Exchange under the ticker VSN. Its principal infrastructure interests included long-distance natural-gas transportation, ethane gathering, natural-gas-liquids processing, storage development, and power generation. The best-known pipeline asset associated with Veresen was Alliance Pipeline, a roughly 3,000-kilometre system connecting natural-gas supplies in western Canada with markets in the United States Midwest. Veresen also held an interest in the Alberta Ethane Gathering System, a pipeline network serving petrochemical facilities in Alberta, and was associated with Aux Sable Liquid Products, a natural-gas-liquids processing operation near Chicago that separated products including methane, ethane, propane, and butane. The company also operated or invested in a varied power-generation portfolio. Its assets and businesses included cogeneration and district-energy facilities in Canada and the United States, the Brush II generating facility in Colorado, East Windsor cogeneration in Ontario, and waste-heat recovery stations connected with the Alliance pipeline system. These operations supplied electricity, steam, or district heating to industrial, commercial, and municipal customers. Veresen additionally pursued hydroelectric and other renewable-energy opportunities, particularly in British Columbia, through interests and acquisitions involving businesses such as Swift Power and Pristine Power. Several proposed developments reflected Veresen's effort to expand its infrastructure platform. These included the Alton Gas Storage project in Nova Scotia and the Jordan Cove Energy Project, a proposed liquefied-natural-gas export terminal at Coos Bay, Oregon. The company's renewable-energy strategy also included proposed run-of-river hydroelectric projects and biomass-related development. Some of these initiatives remained at the proposal or development stage rather than becoming operating assets. In 2010, Fort Chicago announced agreements involving Pristine Power and three British Columbia hydroelectric assets owned by ENMAX Power Corporation. These transactions supported the company's stated move toward renewable generation and diversified its exposure beyond conventional gas infrastructure. The business continued to combine regulated-like or contracted infrastructure characteristics with development and commodity-exposed activities. Pembina Pipeline agreed to acquire Veresen in 2017. The transaction was reported at approximately C$9.7 billion, including assumed debt and other transaction considerations as described in coverage of the deal. Following completion, Veresen ceased to operate as an independent publicly traded company and its assets were integrated into Pembina's infrastructure portfolio. Veresen is therefore a defunct corporate brand rather than an active standalone energy company.

Veresen was established in 2003 as part of the evolution of Fort Chicago Energy Partners, a Canadian energy-infrastructure business based in Calgary. Its early identity was closely associated with natural-gas transportation and related midstream infrastructure. The company became publicly traded on the Toronto Stock Exchange and developed a portfolio spanning Canada and the United States. A central holding was Alliance Pipeline, a long-distance natural-gas system of approximately 3,000 kilometres linking western Canadian production with consumers in the U.S. Midwest. Veresen also participated in the Alberta Ethane Gathering System, which transported ethane to petrochemical facilities operated by Nova Chemicals at Joffre and Dow Chemicals at Fort Saskatchewan. Through Aux Sable Liquid Products, the company was involved in processing natural-gas liquids near Chicago, producing products such as methane, ethane, propane, and butane. The business expanded into power generation and district energy. Its portfolio included cogeneration facilities in Charlottetown, Prince Edward Island; London, Ontario; Ripon, California; and San Gabriel, California. The London facility supplied both electricity and district heating, while East Windsor in Ontario provided heat to Ford's Windsor plant as well as electricity. Other assets included the Brush II generating facility in Colorado and waste-heat recovery stations operated through NRGreen Power and associated with pipeline pumping infrastructure in Saskatchewan. Beginning around 2010, Fort Chicago pursued a more explicit diversification strategy into renewable power, with particular attention to British Columbia. It acquired or sought interests in hydroelectric and biomass projects and agreed to purchase Pristine Power, a developer whose portfolio included proposed hydroelectric projects. It also agreed to acquire three British Columbia hydro assets from ENMAX Power Corporation. Swift Power, acquired by Fort Chicago, pursued run-of-river hydroelectric opportunities in the province. These initiatives reflected a strategy of combining established gas infrastructure with contracted or development-stage renewable generation. Veresen's development portfolio also included projects outside its operating assets. The Alton Gas Storage facility was proposed for Nova Scotia, while the Jordan Cove Energy Project involved a proposed liquefied-natural-gas export terminal at the Port of Coos Bay in Oregon. Such projects exposed the company to permitting, commercial, and market-development risks and were not equivalent to completed operating facilities. After adopting the Veresen identity, the company continued to operate as a diversified energy-infrastructure platform with pipeline, gas-processing, storage, and power interests. In 2017, Pembina Pipeline agreed to acquire the company for a reported total value of about C$9.7 billion. Completion of the transaction removed Veresen from the public market and transferred its businesses into Pembina. Veresen consequently became a historical brand and legal entity rather than an active standalone operator.

• 2017

  Acquired by Pembina Pipeline

  [1]Veresenen.wikipedia.org

  Pembina Pipeline acquired Veresen in a transaction reported at approximately C$9.7 billion, ending its independent public-company status.

• 2010

  Renewable-energy strategy accelerated

  [1]Veresenen.wikipedia.org

  Fort Chicago intensified its move into renewable generation, especially hydroelectric development in British Columbia.

• 2010

  Pristine Power acquisition agreement

  [1]Veresenen.wikipedia.org

  Fort Chicago agreed to acquire Pristine Power after previously holding a minority stake in the developer.

• 2010

  ENMAX British Columbia hydro assets agreement

  [1]Veresenen.wikipedia.org

  Fort Chicago agreed to purchase three British Columbia hydroelectric assets from ENMAX Power Corporation.

• 2003

  Veresen-era company established

  [1]Veresenen.wikipedia.org

  The company was established in 2003 during the development of the business that evolved from Fort Chicago Energy Partners.

A diversified North American energy-infrastructure operator combining natural-gas transportation and processing with thermal power, cogeneration, district energy, and emerging renewable-generation investments.

• Natural-gas pipeline

  Alliance Pipeline

  A major cross-border natural-gas pipeline system extending roughly 3,000 kilometres between western Canada and the U.S. Midwest. The system formed one of Veresen's principal transportation infrastructure interests and connected producing regions with downstream North American markets.

• Ethane gathering pipeline

  Alberta Ethane Gathering System

  A roughly 1,300-kilometre Alberta pipeline network supplying ethane to petrochemical facilities, including Nova Chemicals' Joffre plant and Dow Chemicals' facility at Fort Saskatchewan. It supported the movement of feedstock to Alberta's industrial processing base.

• Natural-gas-liquids processing

  Aux Sable Liquid Products

  A natural-gas-liquids processing business near Chicago associated with Veresen's gas portfolio. Its operations produced separated hydrocarbon products including methane, ethane, propane, and butane for regional industrial and energy markets.

• Cogeneration and district energy

  Fort Chicago Power

  A collection of cogeneration and district-energy facilities in Canada and the United States. The portfolio supplied combinations of electricity, steam, and district heating to industrial, commercial, and municipal customers, including facilities in London, Charlottetown, Ripon, San Gabriel, and East Windsor.

• Waste-heat power generation

  NRGreen Power

  A business associated with the Alliance pipeline system that operated four small generating stations using waste heat from pipeline pumping stations in Saskatchewan. It represented Veresen's use of energy-recovery technology alongside conventional infrastructure.

• Liquefied-natural-gas export project

  Jordan Cove Energy Project

  A proposed LNG export terminal at the Port of Coos Bay in Oregon. The project was part of Veresen's development portfolio and should be distinguished from the company's completed pipeline and power assets.

• Run-of-river hydroelectric development

  Swift Power

  A Veresen-associated power business focused on developing run-of-river hydroelectric projects in British Columbia. It formed part of the company's effort to expand into renewable generation during the Fort Chicago period.

• 2017

  Acquisition by Pembina PipelineM&A

  Background

  Veresen owned a diversified collection of North American pipelines, gas-processing interests, and power assets that complemented Pembina Pipeline's infrastructure business.

  Action taken

  Pembina Pipeline acquired Veresen and integrated its assets into the Pembina group.

  Aftermath

  Veresen ceased to exist as an independent publicly traded company. The reported transaction value was approximately C$9.7 billion.

  Reported transaction value. C$9.7 billion (2017 acquisition)

  Source

• 2010

  Accelerate entry into renewable energyStrategy

  Background

  Fort Chicago's established portfolio was concentrated in gas transportation, processing, and power infrastructure. The company sought additional growth opportunities in British Columbia hydroelectric and other renewable projects.

  Action taken

  The company increased its focus on renewable development and pursued hydroelectric, biomass, and related power investments.

  Aftermath

  The strategy broadened the company's development pipeline and preceded agreements involving Pristine Power and ENMAX's British Columbia hydro assets.

  Source

• 2010

  Agreement to acquire Pristine PowerM&A

  Background

  Pristine Power developed biomass and hydroelectric projects, and Fort Chicago already held an 11.4 percent interest in the company.

  Action taken

  Fort Chicago reached an agreement to purchase Pristine Power and consolidate its renewable-development exposure.

  Aftermath

  The agreement formed part of Fort Chicago's broader diversification into renewable generation; the available reference material does not provide full completion details.

  Source

• 2010

  Agreement to acquire ENMAX hydro assetsM&A

  Background

  ENMAX Power Corporation owned three hydroelectric assets in British Columbia that fit Fort Chicago's renewable-energy expansion.

  Action taken

  Fort Chicago agreed to purchase the three assets from ENMAX.

  Aftermath

  The proposed transaction expanded the company's British Columbia renewable portfolio and supported its stated diversification strategy.

  Source

• 2017

  Pembina Pipeline completes acquisition of Veresen[1]Veresenen.wikipedia.org

  M&A

  Pembina Pipeline acquired Veresen in a transaction reported at approximately C$9.7 billion, ending Veresen's existence as an independent listed company.

• 2010

  Fort Chicago moves toward renewable-energy expansion[1]Veresenen.wikipedia.org

  Other

  Fort Chicago announced a stronger push into renewable energy, particularly British Columbia hydroelectric development, as it sought to broaden its infrastructure portfolio beyond natural-gas assets.

• 2010

  Fort Chicago agrees to acquire Pristine Power[1]Veresenen.wikipedia.org

  M&A

  Fort Chicago reached an agreement to purchase Pristine Power, a developer of biomass and hydroelectric projects in which Fort Chicago already held a minority interest.

• 2010

  Fort Chicago agrees to acquire three ENMAX hydro assets[1]Veresenen.wikipedia.org

  M&A

  The company agreed to purchase three British Columbia hydroelectric assets from ENMAX Power Corporation, supporting its renewable-generation diversification plan.

1. 1Veresenen.wikipedia.org