HOUSTON – Nov. 1, 2017 –(PR Newswire) – Caliche Development Partners, LLC announced today the targeted date of service for the initial NGL storage project at its recently acquired subsidiary Coastal Caverns, Inc. ("Caliche Coastal"). Caliche Coastal's fully-permitted, salt cavern storage facilities sit on 53 acres atop Spindletop Dome in Beaumont, TX, with an additional 345 acre brine pond site less than four miles away. When fully developed, Caliche Coastal will provide Gulf Coast NGL and olefin producers and end users up to 32 million barrels of purpose-built, salt cavern storage facilities.
The initial phase of the project involves engineering, construction, and customer contracting for ethylene storage service from the existing 5 million barrel cavern. Coastal Caverns designed and constructed this cavern prior to Caliche's acquisition, and Caliche performed sonar imaging and mechanical integrity testing on the cavern in May 2017.
This first Caliche Coastal cavern can hold up to 600 million pounds of ethylene and provides 600,000 pounds per hour of deliverability, supported by comparable brine storage, displacement, and make-up capability. This cavern and surface facilities will be operational and available for customer deliveries during the third quarter of 2018.
"Caliche is excited to become a stakeholder in the historically significant and economically strong community of Beaumont and the surrounding area," said Dave Marchese, Chief Executive Officer of Caliche Development Partners, LLC. "We believe Caliche Coastal responds to immediate customer needs and the growing infrastructure in Beaumont/Port Arthur and the Gulf Coast Region. Caliche Coastal is unique in that it will not perform any marketing activities and will focus solely on the needs of customers who require highly reliable deliverability of their products from storage."
The Caliche Coastal facility is strategically located with nearby access to pipelines, truck, rail, and dock facilities. Within a 12- mile radius are 10 dock facilities for barge or ship access, nine of them suitable for deep water vessels. Additionally, within a 10-mile radius of the main site, there are numerous ethylene and other NGL pipelines providing customers with a variety of delivery options. Caliche expects to develop seven additional fully-permitted storage wells, coming online at a rate of one well per year through 2025.
About Caliche Development Partners, LLC
Caliche Development Partners, LLC is a Houston, Texas-based company focused on the acquisition, development, construction, ownership, and operation of subsurface hydrocarbon storage assets and related pipelines in North America, with a primary focus on the U.S. Gulf Coast. The Caliche team brings over 175 years of combined midstream asset development experience, including project finance, facility design, permitting, construction, marketing, and operations. The company has partnered with North America's oldest dedicated midstream private equity investor, Energy Spectrum Capital, who also brings substantial midstream experience to the Caliche board. Together, the team offers a mixture of deep industry knowledge, positioning the partnership for successful development and ownership. More information about Caliche Development Partners, LLC and Caliche Coastal can be found at www.calichestorage.com/calichecoastal/. More information about Energy Spectrum Capital can be found at http://www.energyspectrumcapital.com.