HOUSTON, May 1, 2014 - Niska Gas Storage Partners LLC (NKA) today announced the execution of a storage services agreement with its largest volumetric customer, TransCanada Gas Storage Partnership ("TransCanada"). This contract replaces a storage agreement which contained an option to terminate effective April 1, 2015.
The previous agreement provided approximately 40 Bcf of storage capacity at our AECO facility and extended until 2030, with options for either party to terminate at the end of every five-year interval. TransCanada has elected to terminate this agreement and has entered into a new agreement which extends until 2020. The new agreement provides for an initial capacity of approximately 40 Bcf which will be reduced to approximately 20 Bcf in 2017. By terminating the prior agreement, TransCanada became obligated to make an early termination payment.
"We are pleased to continue our long-term relationship with TransCanada", stated Simon Dupéré, President and Chief Executive Officer. "This new contract extends our established relationship and we expect this transaction to deliver meaningful stability to our fee-based revenue stream in the coming years. With the execution of this new contract, the weighted average life of our long-term contracts is now approximately four years."
Niska is the largest independent owner and operator of natural gas storage in North America, with strategically located assets in key natural gas producing and consuming regions. Niska owns and operates three natural gas storage facilities, including the AECO Hub TM in Alberta, Canada; Wild Goose in California; and Salt Plains in Oklahoma. Niska also contracts for natural gas storage capacity in the U.S. Mid-continent.
Forward Looking Statements
This press release includes "forward-looking statements" - that is, statements related to future, not past, events. Forward-looking statements are based on current expectations and include any statement that does not directly relate to a current or historical fact. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "anticipate," "believe," "intend," "expect," "plan," "will" or other similar words. Actual results and future events could differ materially from those anticipated in such statements. For further discussion of risks and uncertainties, you should refer to Niska`s filings with the United States Securities and Exchange Commission. Niska undertakes no obligation, and does not intend, to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.
SOURCE: Niska Gas Storage Partners LLC
Niska Gas Storage Partners LLC
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Source: Niska Gas Storage Partners LLC via GlobeNewswire