Return to search

EFG partners with West Face Capital to finance option in LNG project

Energy Fundamentals Group LLC (EFG) has agreed to partner with West Face Capital to develop a financing plan that will allow it to buy up to 20 percent equity interest in the Jordan Cove Energy Project. Jordan Cove is a liquefied natural gas (LNG) facility proposed for construction in Coos Bay, Oregon. The project is currently owned by Calgary-based energy infrastructure company Veresen Inc (TSE: VSN). EFG is a U.S. energy investment and advisory services business. Headquartered in Toronto, West Face is a private investment firm with managed assets of over $2.5 billion. At present, West Face has three investments in the LNG industry.


Energy Fundamentals Group provides update following recent judicial confirmation of its option in the Jordan Cove Energy Project

TORONTO, April 16, 2015 /CNW/ – Energy Fundamentals Group (EFG) is pleased to announce the recent confirmation of EFG’s Option (the Option) to buy up to a 20 per cent equity interest in the Jordan Cove Energy Project (the Project), which is currently owned by Veresen Inc. (Veresen) (TSE: VSN).

On February 26, 2015, the Ontario Superior Court of Justice (the Court) released a decision confirming, among other things, the validity of the Option. While certain issues remain in dispute and are before the courts, Veresen’s appeal does not contest the Court’s ruling with respect to the validity of the Option. EFG believes that the remaining issues with Veresen can be resolved in the best interests of the Project, EFG and Veresen.

To advance its interests in the Option, EFG has entered into a business arrangement with West Face Capital Inc. (West Face), a leading Canadian asset manager with expertise in the LNG business. EFG and West Face have been exploring strategic options and have commenced the process of engaging financial advisors to develop a financing plan, with a view to EFG exercising the Option and becoming a partner with Veresen in the Project. In addition, Toronto-based investment-banking firm Morrison Park Advisors holds a beneficial interest in the Option.

The Jordan Cove Energy Project, being developed by Veresen, is a six million tonne per annum natural gas liquefaction facility proposed to be constructed in Coos Bay, Oregon. Based on Veresen’s current project timeline, a final investment decision is expected in late 2015 or early 2016. With a four-year construction period, commercial LNG production is targeted for late 2019. The Option may be exercised by EFG at any time until five days after the closing of financing for the construction of the Project.

“Jordan Cove is the premier West Coast LNG export development in North America, and EFG is excited to be moving ahead with preparations to participate in its development,” said Todd Karry, president and chief executive officer of EFG. “As experienced LNG and energy infrastructure investors, we are well-positioned to partner with Veresen, and look forward to it.”

About Energy Fundamentals Group

Energy Fundamentals Group is engaged in the acquisition, development and management of generation, transmission, distribution and other assets in the North American natural gas and energy infrastructure sector. EFG has a long-term investment horizon targeting assets that offer enduring value and stable returns to investors over time. EFG has an option to participate in up to 20 per cent of the Jordan Cove Energy Project, a six million tonne per annum natural gas liquefaction facility proposed to be constructed in Coos Bay, Oregon.

About West Face Capital Inc.

West Face Capital Inc. is an asset manager and provider of bespoke financing solutions. West Face currently has three investments in the LNG industry: Port Meridian, a proposed LNG import project located near Liverpool, England; Port Ambrose, a proposed LNG import project located near NYC; and a joint venture with Hoegh LNG to operate LNG vessels.

About Morrison Park Advisors

MPA Morrison Park Advisors Inc. is a Canadian independent investment banking firm providing financial and strategic advisory services for clients requiring specialized investment banking expertise.

SOURCE Energy Fundamentals Group
For further information: Todd Karry, Energy Fundamentals Group, (248) 594-6320; David Santangeli, Morrison Park Advisors, (416) 861-2230

Photo courtesy of Veresen Inc