Profile: Niska Gas Storage Partners LLC (NKA)
22 May 2013
Niska Gas Storage Partners LLC (Niska Partners) is an independent owner and operator of natural gas storage assets in North America. Niska Partners owns or contract for approximately 204.5 billion cubic feet of total gas storage capacity. As of March 31, 2011, the Company’s total working gas capacity to 204.5 billion cubic feet. Niska Partners store natural gas for a range of customers, including financial institutions, marketers, pipelines, power generators, utilities and producers of natural gas. The Company provides multi-year, multi-cycle storage services to its customers under long term firm reserved storage (LTF) contracts. The volume-weighted average life of its LTF contracts at March 31, 2011, was 2.6 years. The Company also provides services for customers under short term firm storage (STF) contracts. STF contracts typically have terms of less than one year.
Under its LTF contracts its customers are obligated to pay the Company monthly reservation fees in exchange for the right to inject, store and withdraw volumes of natural gas on days and for periods selected by them at injection or withdrawal rates up to maximums specified in the contract. Under an STF contract, a customer pays a fixed fee to inject a specified quantity of natural gas on a specified date or dates and to store that gas in its storage facilities until withdrawal on a specified future date or dates. Its portfolio of third-party customers consists of a strategic mix of customer types, each of which tends to have a storage usage pattern that is different from those of other customers at the facility. The Company purchases, stores and sells natural gas for its own account in order to utilize, storage capacity and injection and withdrawal capacity that is not contracted to customers; contracted to customers, but underutilized by them, and available only on a short-term basis. The Company purchases gas for its own account, inject it and subsequently withdraw and sell the gas. Its gas storage customers include a mix of gas market participants, including financial institutions, producers, marketers, power generators, pipelines and municipalities. Its owned and operated gas storage facilities consist of AECO Hub (comprised of two facilities in Alberta, Canada), its Wild Goose storage facility in California and its Salt Plains storage facility in Oklahoma.
The Company’s operation, is consists of two facilities in Alberta, Suffield and Countess, which are 75 miles apart but operate as one hub. AECO Hub supports high cycling customer contracts. AECO Hub is the natural gas storage provider in western Canada and the independent storage hub in North America. AECO Hub is located in the Western Canadian Sedimentary Basin (WCSB), which is the hydrocarbon basin in Canada and gas producing regions in North America. AECO Hub is connected to the extensive Alberta System. Most of the gas produced in Alberta flows into the Alberta System, which transports that gas from the well or gas plant to industrial consumers and gas utilities in Alberta and to export pipelines at the Alberta border.
The Company’s Wild Goose storage facility is located 55 miles north of Sacramento, California. Wild Goose is a deliverability, multi-cycle, HDMC storage facility. Wild Goose provides natural gas receipt and delivery services at Pacific Gas & Electric Company (PG&E) Citygate, a liquid trading point where gas supply from multiple upstream basins meets the volatile California end-use gas demands that create a dependence on natural gas storage. Wild Goose is connected to two PG&E interconnect points, Line 167 (a local transmission line), which is situated adjacent to the facility, and PG&E's Line 400/401 through its own 25 mile, 30 inch connector pipeline. Wild Goose operates 15 gas storage wells that are completed in three depleted natural gas reservoirs with an effective working capacity of 35 billion cubic feet and a gas generated compression of 20,800 horsepower.
The Company’s Salt Plains storage facility is located 110 miles north of Oklahoma City, Oklahoma. Salt Plains provides intrastate services in Oklahoma through its connection to pipelines operated by ONEOK Gas Transportation Pipelines, L.L.C. (ONEOK), and intrastate and interstate services through its interconnect with pipelines operated by Southern Star Central Gas Pipeline, Inc. (Southern Star). The reservoir has a total working gas storage capacity of approximately 13 billion cubic feet. Salt Plains operates 30 wells that are completed in a depleted natural gas storage reservoir.
The Company competes with TransCanada (Edson, CrossAlta), Atco (Carbon), Enstor (Alberta Hub), Buckeye Partners (Lodi), PG&E, NW Natural, PG&E (Gill Ranch) and Southern Star.
Niska Gas Storage Partners LLC
Suite 2500, 1001 Fannin Street
HOUSTON TX 77002