Houston – October 3, 2023 - Caliche Development Partners II (Caliche II) today announced that they have received all necessary regulatory approvals and closed on their acquisition of Central Valley Gas Storage (CVGS), a former subsidiary of Southern Company Gas. Located north of Sacramento, California, the natural gas storage complex is interconnected with the gas transmission system of Pacific Gas and Electric. Caliche II plans to open a regional office in Fairfield; and add three employees between there and the existing plant.
“CVGS is a safe, reliable and high deliverability natural gas storage asset with an exceptional, 10-person team already in place,” said Darrell Hall, Vice President of Operations for Caliche II. “From here, we will continue the focus on bringing safe reliability and deliverability to Northern California energy infrastructure and look for opportunities to further improve those three critical areas.”
CVGS is one of two underground storage facilities Caliche agreed to acquire from Southern Company Gas in November 2022 for approximately $186 million. The second – Golden Triangle Storage (GTS) – is a salt-dome cavern facility located in Beaumont, Texas, with the permitted ability to construct nine underground storage caverns, of which two are currently in FERC certificated natural gas service. Caliche has been canvassing the market for customer interest in the remaining seven potential caverns, including holding an oversubscribed open season for natural gas service this past summer. Caliche is also actively exploring new site acquisitions for the sequestration of carbon dioxide (CO2). Just last month, the company announced an agreement with the City of Beaumont to lease subsurface zones under 4,000 contiguous acres in Jefferson County, Texas.
Finance Contact: David Saindon – dsaindon@calichestorage.com
Media Contact: Emily C. Walsh – emily@ecwcommunications.com