Vecino, DRW to Develop South Texas Gas Storage, 40-Mile Pipeline to Agua Dulce
(P&GJ) — Vecino Energy Partners and DRW Energy Trading have partnered to develop the Piedras Pintas Salt Dome in Duval County, Texas, aiming to bolster natural gas storage capacity and connectivity in South Texas.
The project, contingent on a final investment decision (FID) and necessary approvals, includes constructing a hydrocarbon storage facility with a capacity for over 50 billion cubic feet (Bcf) of high-deliverability natural gas or 100 million barrels (Mmbbls) of liquids storage. The facility will connect to the natural gas hub at Agua Dulce via a 40-mile pipeline, making it the closest salt dome storage site to Corpus Christi, Brownsville, and Mexico.
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Phase I of the development will feature two natural gas storage caverns and associated infrastructure, with in-service dates targeted for 2028 and 2029. DRW Energy Trading will anchor the project, underwriting the gas caverns and serving as a major shipper and investor in the region.
“We are pleased to work with the team at DRW on this exciting opportunity,” said Nelson Ferries, Vecino’s Executive Vice President of Origination. “Natural gas volatility continues to be a real challenge for producers, marketers, and industrial users, and this facility is specifically designed to navigate those short-term market dislocations.”
Jonathan Harms, Managing Director of Energy Origination for DRW, emphasized the project’s strategic importance: “We believe this project presents an opportunity to help strengthen the energy infrastructure in this critical part of the United States, providing additional natural gas storage to spur future LNG development and strengthen the pipeline between the US and Mexico.”
The project highlights the growing demand for natural gas storage and infrastructure, aligning with increased industrial activity and energy needs along the Texas-Mexico border.
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