Black Bayou wins regulatory approval for underground gas storage in Louisiana (U.S.)
The Black Bayou Energy Hub, a planned underground salt dome gas storage project in southwest Louisiana, has received approval to build facilities in the Cameron and Calcasieu Parishes, the project's developer said on Wednesday.
The project, situated close to existing and planned liquefied natural gas (LNG) plants, accepted a certificate of public convenience and necessity from the Federal Energy Regulatory Commission (FERC) in August after a review by the regulator concluded there would be no significant impact on the environment, Black Bayou Gas Storage said of the previously unannounced approval.
The certificate is an important milestone in advancing towards a final investment decision, the company said. Mercuria, one of the partners in the project, has committed $50 MM in capital, Black Bayou Gas Storage said.
The project is expected to provide total working gas capacity of 34.7 Bft3 from four caverns to existing and planned LNG plants, which are expected to draw more than 30 Bft3 of gas per day for exports.
Initial operations for the first two caverns are expected to start in 2028, with the next two following in 2030, Black Bayou said.
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