The first phase of construction will provide about 26 Bcf of storage in an area along the Texas Gulf Coast, near the center of the U.S.’ growing LNG sector. (Source: Shutterstock)
Texas’ next salt dome natural gas storage project took a major step forward on June 17 with the state government approving its construction.
The Texas Railroad Commission approved a permit to build the Freeport Energy Storage Hub, an underground natural gas storage facility in Fort Bend County, Texas. Gulf Coast Midstream Partners (GCMS) filed the application in February.
The first phase of construction will provide about 26 Bcf of storage in an area along the Texas Gulf Coast, near the center of the U.S.’ growing LNG sector.
“FRESH will provide critical natural gas storage, balancing and transportation services to the growing natural gas, LNG and electricity markets in Texas and the Southeast,” said Edmund Knolle, president and chief commercial officer of GCMS in a social media post.
The salt dome storage is currently the company’s only project. Two companies have signed binding agreements for capacity, and GCMS is in negotiations with others as it works towards a final investment decision to begin development, according to information provided by GCMS.
The company’s first phase of construction includes a 35-mile, 30-inch diameter pipeline system that would connect with other major lines owned by midstream companies such as Kinder Morgan, Enterprise Product Partners and Williams Cos. Construction is expected to take three years.
The last new salt dome storage in the region, the Tres Palacios facility, was built in 2008. Enbridge currently owns the site and has plans to expand its capacity.
The FRESH project is not the only greenfield project under development. NeuVentus, owned by Lotus Infrastructure Partners, is developing a site in Liberty County, Texas, and is currently holding an open season for future capacity. The project received Railroad Commission approval in April.
The growth in capacity demand follows the ongoing development of the natural gas sector, Knolle said in his statement.
LNG demand continues to ramp up along with greater overall demand for gas-fired power generation. The larger systems require storage capacity to react quickly to market shifts.
“Significantly more underground natural gas storage capacity is required to ensure the feasibility of serving the LNG and power growth forecasts, and still maintain energy reliability for all consumers, large and small,” Knolle said.
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