U.S. pipeline and storage operator Easton Energy LLC is planning to expand its NGL and olefins storage at existing salt caverns along the Texas Gulf Coast and add crude storage capability.
Demand for energy storage has soared as the COVID-19 pandemic crushed fuel demand, spurring oil producers and traders to fill storage facilities across the U.S. Oil prices have rebounded since April, but U.S. Gulf Coast crude storage levels hit a record on June 12, according to data from the U.S. Energy Information Administration.
Easton's salt dome in Markham, Texas, is located between petrochemical markets in Houston and Corpus Christi, Texas, and crude export markets between Freeport and Corpus Christi.
NGLs and olefins already are being stored at the Markham facility, and Easton's new agreement with Texas Brine Company gives it rights to add crude storage. In total, the company has rights to 50 million barrels of storage, totaling 13 caverns. Three of those caverns are already leased, leaving a remainder of 40 million barrels of storage capacity.
Houston-based Easton is backed by Cresta Fund Management LLC, which also backs Sentinel Midstream Holdings LLC. The companies are working on various pipeline and storage agreements in the crude oil space.
Recommended Reading
EQT, Shell Leaders Warn of Urgently Needed Permit Reform
2022-11-23 - At a recent energy conference, E&P leaders also warned that the energy transition needs to slow down or the U.S. will face European-style disruptions.
Natural Gas Certification Question: Which Standard Should be Standard?
2022-09-22 - Energy ESG panelists at a recent Hart Energy event contend that higher production of natural gas is necessary, certification of lower methane emissions is critical, and government needs to stay out of it.
Greenpeace Takes Legal Action over EU’s ‘Green’ Label for Gas, Nuclear
2022-09-19 - The environmental group argues the EU violated its own climate laws by doing this, citing the greenhouse-gas emissions produced by gas power plants, and say the move risks diverting investments into fossil fuels instead of renewable energy.
US Outlines Roadmap to Boost Sustainable Aviation Fuel
2022-09-23 - The Biden administration wants SAF to achieve a minimum of a 50% reduction in greenhouse-gas emissions compared to conventional fuel and seeks to expand supply, use, reduce its cost and enhance its sustainability.
CIM Group Forms Terreva Renewables with RNG Acquisitions
2022-09-12 - The assets are expected to produce more than 3.9 million MMBtu of RNG per annum with production starting by year-end 2022, according to a news release.