Houston – October 17, 2023
– Caliche Development Partners II (Caliche) is pleased to announce agreements with local taxing authorities for the development of five additional caverns at its Golden Triangle Storage (GTS) underground storage location in Beaumont, Texas, and the company hopes to secure more in the coming months. Together such contracts would grant the Spindletop complex an exemption from ad valorem taxes for 10 to 15 years. As customer demand for underground storage expands, the combination of the phases could be up to $500 million in investment, potentially bringing hundreds of construction jobs and seven new full-time positions to Beaumont.
GTS currently has two Federal Energy Regulatory Commission (FERC) certificated natural gas storage caverns, holding a FERC 7(C) certificate that allows for market-based rate service from the existing caverns and a 20-mile, dual 24” header connecting the facility to seven intra- and inter-state pipelines. Caliche currently employs 13 full-time team members at GTS.
The phased growth plan would begin with an industrial gas cavern, followed by a second phase of two additional natural gas caverns, and then two additional phases in yet-to-be-determined storage service. The GTS site is permitted with the Texas Railroad Commission (TRRC) for operation of up to nine underground caverns, and this plan brings Caliche closer to that ultimate capability.
Caliche is actively marketing the entire expansion project, including a recently completed oversubscribed open season for 14 billion cubic feet (Bcf) of new natural gas storage capacity. Each cavern takes two to three years to construct after customer commitment, with 2029 being the targeted completion date for all development.
“Caliche’s ongoing partnership with local government is critical to our ability to contribute as an active community employer,” said Dave Marchese, Chief Executive Officer of Caliche II. “And we plan to use our experience in storing a diverse range of products and existing relationships with industrial customers on the Gulf Coast to attract safe, reliable and high deliverability business to the area, including clean hydrogen, CO2 sequestration, and fuels for grid balancing power plants.”
Separately, Caliche II just embarked on the Class VI permitting process with state and federal regulators for newly leased subsurface zones under 4,000 contiguous acres; if approval is received, the company will be among the area’s first CCS providers.
Development & Operations Contact: Darrell Hall – dhall@calichestorage.com
Media Contact: Emily C. Walsh – emily@ecwcommunications.com