Press release from Marketwire
Canexus Corporation Announces Cold Lake Blend Delivery Agreements to Unit Train Loading Facility and Multi-year Terminal Services Agreement
Corporation Guaranteed Capacity Allotment of up to 100,000 Barrels per Day
Monday, July 22, 2013
Canexus Corporation Announces Cold Lake Blend Delivery Agreements to Unit Train Loading Facility and Multi-year Terminal Services Agreement20:41 EDT Monday, July 22, 2013
CALGARY, ALBERTA--(Marketwired - July 22, 2013) - Canexus Corporation (TSX:CUS) (the "Corporation" or "Canexus") today announced that it has entered into long-term agreements with Inter Pipeline Fund ("Inter Pipeline") and Inter Pipeline Polaris Inc. for the delivery of bitumen blend from the Cold Lake pipeline system to Canexus' Bruderheim Terminal for loading into unit trains. Under the terms of the agreements, Canexus will be guaranteed a capacity allotment of up to 100,000 barrels of Cold Lake Blend pipeline delivery per day.
"These agreements complement the Canexus agreement with MEG Energy Corp. that was announced last December to facilitate delivery of Access Western Blend to our Bruderheim Terminal", said Mr. Gary Kubera, President and Chief Executive Officer. "With multiple oil assays available from a portfolio of producers, the terminal becomes a strategic centre for originating large scale oil shipments by rail from Alberta."
Facilities to load unit trains of up to 118 tank cars (approximately 70,000 barrel movements) at Canexus' Bruderheim Terminal are currently under construction with start-up projected later this year, initially loading Access Western Blend. Pipeline facilities that will be constructed by Inter Pipeline to connect Cold Lake Blend to Bruderheim as a part of the agreements announced today are projected to be in service by mid-2014.
Canexus also announced today that it has entered into a multi-year agreement with Cenovus Energy Inc. for bitumen blend pipeline receiving and unit train loading services at the Bruderheim Terminal.
Forward Looking Statements
This press release contains forward looking statements and information relating to expected future events relating to Canexus and its subsidiaries, including with respect to the anticipated timing of completion of facility construction at Canexus' Bruderheim Terminal and the construction, and anticipated timing of completion, of pipeline facilities by Inter Pipeline. The use of the words "expects", "anticipates", "continue", "estimates", "projects", "should", "believe", "plans", "intends", "may", "will" or similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including market and general economic conditions, future costs, treatment under governmental regulatory, tax and environmental regimes and the other risks and uncertainties detailed under "Risk Factors" in the Corporation's Annual Information Form filed on the Corporation's SEDAR profile at www.sedar.com. Management believes the expectations reflected in these forward-looking statements are currently reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Due to the potential impact of these factors, Canexus disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law. Financial outlook information contained in this press release about prospective results of operations, financial position or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available. Such financial outlook information should not be used for purposes other than those for which it is disclosed herein.
Canexus produces sodium chlorate and chlor-alkali products largely for the pulp and paper and water treatment industries. Our four plants in Canada and two at one site in Brazil are reliable, low-cost, strategically-located facilities that capitalize on competitive electricity costs and transportation infrastructure to minimize production and delivery costs. Canexus also provides fee-for-service hydrocarbon transloading services to the oil and gas industry from its terminal at Bruderheim, Alberta. Canexus targets opportunities to maximize shareholder returns and delivers high-quality products to its customers. Canexus common shares (CUS) and debentures (Series I - CUS.DB; Series III - CUS.DB.A; Series IV - CUS.DB.B) trade on the Toronto Stock Exchange. More information about Canexus is available at www.canexus.ca.
FOR FURTHER INFORMATION PLEASE CONTACT:
President and CEO, Canexus Corporation
CFO, Canexus Corporation