Caliche's Spindletop project to boost natural gas storage capacity with new caverns in Beaumont

Caliche Development Partners III, Houston, through subsidiary Golden Triangle Storage LLC (GTS), has reached a final investment decision (FID) on the first phase of its Spindletop Expansion Project in Beaumont, Tex.

The decision follows receipt of a Federal Energy Regulatory Commission (FERC) certificate of public convenience and necessity. MUFG will provide debt financing.

The phase covers construction of two salt dome storage caverns and associated surface infrastructure, including interconnects to Kinder Morgan's Trident and ARM's Mustang pipelines. At full buildout—pending a future FID on two additional FERC-approved caverns—the GTS complex is expected to exceed 60 bcf of capacity across eight caverns, with injection rates of 2.2 bcfd and withdrawal rates of 2.5 bcfd, which the company said would make it the largest natural gas storage hub on the US Gulf Coast.

Expanded operations are expected to begin in late 2028 and extend into early 2029.

"We've been encouraged not only by FERC's recognition of the critical need for additional storage to strengthen the reliability of the nation's natural gas and electric systems," said Sam Wallace, Caliche chief commercial officer. "Given the strong customer response to our latest open season, we expect to fully subscribe both caverns in our current expansion and to move forward with two future phases."

The project aligns with GTS's FERC-approved third and fourth cavern expansions, expected to be completed in 2027.

The announcement coincides with rising demand for natural gas storage driven by LNG exports, geopolitical pressures, electrification, and growing energy needs of AI infrastructure.