Caliche Development Partners III, through its subsidiary Golden Triangle Storage, LLC, achieved a Final Investment Decision on the first phase of its Spindletop Expansion Project in Beaumont, Texas.
The decision by Caliche, a Sixth Street portfolio company, comes shortly after the project received a Federal Energy Regulatory Commission certificate of public convenience and necessity, and will be funded through debt financing from MUFG. The project aligns with GTS’ third and fourth gas cavern expansions, which are expected to be completed in 2027. These FERC-approved expansions from 2024 were reinforced by a recent open season that was nearly six times oversubscribed, demonstrating strong customer demand and commitments. This announcement also coincides with rising demand for natural gas storage, driven by LNG exports, geopolitical pressures, electrification and the growing energy needs of AI infrastructure.
Inside the Golden Triangle Expansion: New salt caverns and pipeline interconnects
This phase will include the construction of two new salt dome storage caverns and related surface facilities, as well as interconnects to Kinder Morgan’s Trident and ARM’s Mustang pipelines. At full buildout (which will include a future FID for the remaining two FERC approved storage caverns), the Golden Triangle Storage complex will provide over 60 Bcf of capacity, with injection rates up to 2.2 Bcf per day and withdrawal rates of 2.5 Bcf per day across eight caverns—making it the largest natural gas storage hub on the Gulf Coast. Expanded operations are expected to commence in late 2028 and continue 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, but also by FERC accessibility and ongoing engagement throughout the approval process,” said Sam Wallace, Chief Commercial Officer of Caliche. “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. We look forward to continuing our collaboration with FERC to bring everything to fruition.”
