Texas Gas Storage Hub Secures Funding Ahead of FID

A Southeast Texas natural gas storage hub has secured new investment to advance toward FID, adding capacity near key Gulf Coast pipeline and LNG markets.

(P&GJ) — A Southeast Texas natural gas storage project has secured new investment to advance development toward a final investment decision, as demand for Gulf Coast storage capacity grows.

Gulf Coast Midstream Partners said Black Bay Partners has committed growth capital to support Phase I of the Nash Energy Storage Hub, a salt dome storage project in Fort Bend County, about 30 miles southwest of Houston.

The initial phase is designed to include two storage caverns with a combined working gas capacity of about 23 billion cubic feet, along with injection capacity of roughly 0.9 billion cubic feet per day and withdrawal capacity of about 1.5 billion cubic feet per day. The project will connect to multiple interstate and intrastate pipelines serving LNG, power, industrial and upstream markets across the Gulf Coast.

The company is targeting a final investment decision in early 2027, with an initial in-service date expected by mid-2030. Additional phases could expand the site with more storage caverns, depending on market demand and regulatory approvals.

Chief Executive Officer Edmund Knolle said the investment will help move the project toward FID and position it to serve a range of gas market participants. Black Bay Partners said growing demand and volatility in U.S. gas markets are increasing the need for additional storage capacity.