FERC Approves Caliche's Expansion Plans to Enhance Gulf Coast Storage Capacity
The Federal Energy Regulatory Commission (FERC) has officially approved Caliche Development Partners III's latest expansion plans for its subsidiary, Golden Triangle Storage, LLC (GTS). This move is designed to significantly enhance the company's natural gas storage capabilities, paving the way for it to become the largest storage hub by volume and injectability in the Gulf Coast region. With the new certificate from FERC, GTS is set to increase its natural gas storage capacity by an additional 30 billion cubic feet (Bcf), along with increasing its injection and withdrawal capabilities by up to 1 billion cubic feet per day. This expansion project, known as the Spindletop Expansion Project, will involve the construction of four new salt dome storage caverns and essential surface-mounted support equipment.
Since acquiring GTS from Southern Company in 2022, Caliche has been actively working to expand its storage capacities. The expansion comes on the heels of FERC's prior approval in 2024, which allowed the facility to double its capacity to 28 Bcf through the addition of two new underground caverns and further infrastructure enhancements. With this most recent approval, GTS’s capacity is expected to exceed 60 Bcf, with advanced injection capabilities of up to 2.2 Bcf per day and withdrawal capabilities reaching 2.5 Bcf per day across eight caverns.
The significance of these developments cannot be understated, especially in light of the growing consensus regarding the importance of natural gas infrastructure for the U.S. economy. FERC Chairman Laura Swett emphasized that storage is crucial for the operations of the natural gas system, enabling seasonal supply and peak demand handling, while also providing reliability in times of outages or severe weather. The expansion of GTS is seen as a key contributor to maintaining a robust and reliable electric grid, allowing for flexibility to meet energy demands. She expressed a desire to see more storage facilities developed across the nation to further boost both natural gas and electrical dependability.
In addition to the expansions, Caliche has also announced new natural gas pipeline interconnections at GTS. Construction has commenced on connections to Momentum's Clarity and ExxonMobil's Beaumont Refinery, which are both expected to become operational later this year. Furthermore, GTS is set to connect with Kinder Morgan's Trident Intrastate Pipeline in early 2027, followed by ARM's Mustang Express Pipeline slated for late 2028. This growth in interconnections reflects Caliche's commitment to improving access and service for its storage clients, providing them with unparalleled access to natural gas supply from key regions, including the Permian, Eagle Ford, and Haynesville basins.
GTS will stand out as it will be the only natural gas storage facility with direct access to multiple LNG export terminals, further enhancing its significance in the energy infrastructure landscape.
Caliche Development Partners operates in partnership with sponsor Sixth Street, focusing on the underground storage of not just natural gas but also industrial gases like hydrogen and helium, along with carbon sequestration initiatives. The company's assets are primarily based in Jefferson County on the Gulf Coast, encompassing the Golden Triangle Storage and Caliche CO2 Sequestration facilities, as well as in Colusa County, California, with the Central Valley Gas Storage facility. Their management team has a history of developing and selling underground storage businesses, making them a prominent player in the energy storage sector. For more information, you can visit their site at calichestorage.com.
Since acquiring GTS from Southern Company in 2022, Caliche has been actively working to expand its storage capacities. The expansion comes on the heels of FERC's prior approval in 2024, which allowed the facility to double its capacity to 28 Bcf through the addition of two new underground caverns and further infrastructure enhancements. With this most recent approval, GTS’s capacity is expected to exceed 60 Bcf, with advanced injection capabilities of up to 2.2 Bcf per day and withdrawal capabilities reaching 2.5 Bcf per day across eight caverns.
The significance of these developments cannot be understated, especially in light of the growing consensus regarding the importance of natural gas infrastructure for the U.S. economy. FERC Chairman Laura Swett emphasized that storage is crucial for the operations of the natural gas system, enabling seasonal supply and peak demand handling, while also providing reliability in times of outages or severe weather. The expansion of GTS is seen as a key contributor to maintaining a robust and reliable electric grid, allowing for flexibility to meet energy demands. She expressed a desire to see more storage facilities developed across the nation to further boost both natural gas and electrical dependability.
In addition to the expansions, Caliche has also announced new natural gas pipeline interconnections at GTS. Construction has commenced on connections to Momentum's Clarity and ExxonMobil's Beaumont Refinery, which are both expected to become operational later this year. Furthermore, GTS is set to connect with Kinder Morgan's Trident Intrastate Pipeline in early 2027, followed by ARM's Mustang Express Pipeline slated for late 2028. This growth in interconnections reflects Caliche's commitment to improving access and service for its storage clients, providing them with unparalleled access to natural gas supply from key regions, including the Permian, Eagle Ford, and Haynesville basins.
GTS will stand out as it will be the only natural gas storage facility with direct access to multiple LNG export terminals, further enhancing its significance in the energy infrastructure landscape.
Caliche Development Partners operates in partnership with sponsor Sixth Street, focusing on the underground storage of not just natural gas but also industrial gases like hydrogen and helium, along with carbon sequestration initiatives. The company's assets are primarily based in Jefferson County on the Gulf Coast, encompassing the Golden Triangle Storage and Caliche CO2 Sequestration facilities, as well as in Colusa County, California, with the Central Valley Gas Storage facility. Their management team has a history of developing and selling underground storage businesses, making them a prominent player in the energy storage sector. For more information, you can visit their site at calichestorage.com.
Topics Energy）
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