Caliche takes FID on 60-Bcf Texas gas storage expansion near Gulf Coast LNG Hub
Caliche Development Partners has approved the first phase of its Spindletop Expansion Project in Beaumont, Texas, advancing plans to expand natural gas storage capacity along the Gulf Coast following recent federal approval of the project.
The final investment decision covers construction of two new salt-dome storage caverns, associated surface facilities and pipeline interconnections with Kinder Morgan's Trident Pipeline and ARM Energy's Mustang Pipeline.
The decision follows the Federal Energy Regulatory Commission's approval of the project and comes after a recent open season that was nearly six times oversubscribed, highlighting strong demand for additional storage capacity in the region.
The expansion is tied to Golden Triangle Storage's third and fourth storage caverns, which are expected to enter service in 2027. Expanded operations associated with the newly approved phase are expected to begin in late 2028 and continue into early 2029.
At full buildout, the Golden Triangle Storage complex would include eight storage caverns with more than 60 billion cubic feet (Bcf) of working gas capacity. The facility would be capable of injecting up to 2.2 Bcf per day and withdrawing up to 2.5 Bcf per day, making it one of the largest natural gas storage hubs on the Gulf Coast.
"We expect strong customer interest to support full subscription of the expansion capacity and future development phases," Sam Wallace, Caliche's chief commercial officer, said in a statement.
Caliche said increasing LNG exports, growing power demand, electrification trends and rising energy requirements from data centers are contributing to greater demand for natural gas storage infrastructure across the Gulf Coast.
Related News
Related News
- Cheniere signs deal with Bechtel to expand U.S. LNG export capacity
- TC Energy approves $1.5-B Columbia Gas expansion after profit tops estimates
- NextDecade to use Honeywell liquefaction technology for 30-MMtpy LNG terminal
- Wärtsilä continues to expand its data center footprint with new 790 MW order in Texas
- SUBLIME Energie inaugurates world's first system capable of liquefying biogas into a renewable fuel
Comments