Niska Gas Storage Partners LLC has placed into service a 15-Bcf expansion at its Wild Goose natural gas storage facility in California.

Niska owns and operates three facilities: Wild Goose, the AECO Hub in Alberta and Salt Plains in Oklahoma. It also contracts gas storage capacity on the Natural Gas Pipeline Co. of America LLC system.

"We continued to execute our operating and financial plan to position Niska for success in the current operating environment," Simon Dupéré, Niska president and CEO, said in a May 22 earnings statement. "During the fourth quarter ended March 31, 2012, we have placed in service an additional 15 Bcf of storage capacity at our Wild Goose facility in California. Capital expenditures in fiscal 2012 related to the addition of 17 Bcf at AECO and Wild Goose were $51 million. While this was well below guidance of $65-75 million, some construction work is expected at Wild Goose to fully commission injection/withdrawal enhancements and improve pipeline connections with [Pacific Gas and Electric Co.]. The carried forward capital expenditures related to this are expected to be $15 [million to] $20 million in fiscal 2013, placing total expansion costs in fiscal 2012 guidance range."

Niska announced the storage developments as part of a report on financial results for its fiscal fourth quarter and year ended March 31. Adjusted EBITDA was $136.2 million for the fiscal year, compared to adjusted EBITDA of $195.5 million for the fiscal year that ended March 31, 2011. Adjusted EBITDA for the quarter was $55.0 million, compared to $61.2 million in the same period in the previous year. The company reported a net loss of $165.8 million for the fiscal year that ended March 31, compared to net earnings of $57.5 million for the fiscal year that ended March 31, 2011.

Niska paid a distribution of 35 cents per common unit on May 15 to unit holders of record on May 4.

Dupéré provided guidance for fiscal year 2013. "Based on market conditions that exist today, we anticipate adjusted EBITDA for the fiscal year ending March 31, 2013 to range from $130 million to $140 million," he said.

Copyright 2012 SNL Financial LC. All Rights Reserved.

(Originally published May 23, 2012, in SNL Daily Gas Report)