Trinity Gas Storage

Keeping up with all the natural-gas-related infrastructure under development along the Gulf Coast is a full-time job. New gas pipelines out of the Permian and the Haynesville. New LNG export terminals from Brownsville, TX, to Plaquemines Parish, LA. And don’t forget new gas storage capacity — that slice of the midstream sector is in the midst of its biggest boom in decades. In today’s RBN blog, we’ll finish our review of the latest round of Gulf Coast storage projects.

We’ve been saying for a while now that the natural gas storage market may be on the verge of a comeback. At the same time, we’ve cautioned that the world has changed since the heyday of gas storage in the mid-to-late 2000s, and that while market participants are clamoring for storage solutions and storage values are rising, what’s driving storage values today is vastly different than what drove the last big capacity build-out (which resulted in a major storage overbuild). As a result, only a handful of storage projects meeting special needs in particular places are likely to reach a final investment decision (FID). In today’s RBN blog, we discuss one such project: a greenfield storage facility under construction at two depleted dry-gas reservoirs 90 miles southeast of Dallas.