Sixth Street Completes Strategic Acquisition to Boost Underground Storage Capabilities

On March 18, 2025, Sixth Street, a prominent global investment firm, announced the successful acquisition of Central Valley Gas Storage (CVGS) by its portfolio company, Caliche Development Partners. This strategic move comes shortly after Sixth Street finalized its acquisition of Caliche and the Golden Triangle Storage (GTS) site in Beaumont, Texas, back in October 2024.

The acquisition of CVGS, located in Princeton, California, marks a significant step forward in expanding Caliche’s underground storage capabilities, which are critical for meeting regional energy demands. With the ongoing expansion project at GTS also in play, the acquisition places Caliche in a robust position to enhance its operational reach in the energy sector, specifically in natural gas storage. Both facilities, CVGS and GTS, will be operated under the vigilant management of Caliche.

Dave Marchese, the Chief Executive Officer of Caliche, expressed enthusiasm regarding this acquisition: "Caliche is eager to uphold its reputation as a safe and dependable operator at the CVGS facility in Northern California. Since our entrance into the local market, we have successfully onboarded ten new employees and have been meeting the deliverability needs of the region’s heating, power, and industrial sectors—especially during peak demands." Marchese emphasized the company’s commitment to safety, low-cost operations, and overall customer satisfaction.

Thanks to Sixth Street's investment, Caliche is actively exploring opportunities to further expand its business relationships and operational capacity throughout California. Caliche's expansion strategy is not just limited to traditional natural gas but also encompasses the underground storage of industrial gases, such as hydrogen and helium, alongside initiatives in carbon sequestration.

About Caliche Development Partners

Founded in Houston, Texas, Caliche Development Partners specializes in the acquisition and development of underground storage solutions for natural gas, along with other industrial gases. The company’s assets, including CVGS and GTS, are strategically positioned in key locations such as Jefferson County on the US Gulf Coast and Colusa County in California. Notably, Caliche’s management team has a competent background, having previously developed and sold its underground storage business at the historical Spindletop salt dome in Beaumont.

About Sixth Street

Established in 2009, Sixth Street has emerged as a global leader in investment, managing over $100 billion in assets and committed capital. The firm employs a long-term investment philosophy, utilizing flexible capital and data-driven strategies to provide innovative solutions for companies across various growth stages. With a team of over 650 members, including more than 280 investment professionals worldwide, Sixth Street continues to strengthen its portfolio and drive profitable growth for its partners.

For further details and insights on Sixth Street and Caliche, visit their respective websites: Sixth Street and Caliche Development Partners.