Vecino to Build Gas Storage Caverns at Piedras Pintas Salt Dome

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Vecino to Build Gas Storage Caverns at Piedras Pintas Salt Dome

Vecino Energy Partners LLC has signed an agreement with DRW Energy Trading LLC to build hydrocarbon storage services at the Piedras Pintas salt dome in Duval County, Texas. Phase 1 is planned to have two natural gas storage caverns, associated infrastructure and a new 40-mile pipeline connecting the project to the gas hub in Agua […]

Vecino Energy Partners LLC has signed an agreement with DRW Energy Trading LLC to build hydrocarbon storage services at the Piedras Pintas salt dome in Duval County, Texas.

Phase 1 is planned to have two natural gas storage caverns, associated infrastructure and a new 40-mile pipeline connecting the project to the gas hub in Agua Dulce. The storage caverns are planned to start service 2028 and 2029.

“Vecino controls enough surface and mineral interests to develop both a gas and liquids storage business rivaling the premier facilities on the Gulf Coast with room for over 50 billion cubic feet of high-deliverability natural gas capacity, over 100 million barrels of liquids storage or a combination thereof”, said a joint statement Tuesday.

“The project will offer connectivity to Agua Dulce and be the closest salt dome storage to Corpus Christi, Brownsville and Mexico”.

The statement said, “DRW will serve as the anchor customer for the project, underwriting the gas caverns in Phase I”.

“DRW, with its deep market expertise, will also play a key role in ensuring the project’s success as a major shipper and investor in the region”, the statement added.

“This project underscores DRW’s commitment to advancing energy infrastructure along the Texas-Mexico border and its strategic focus on providing innovative, market-driven solutions to the energy industry”.

Nelson Ferries, Vecino executive vice president for origination, said, “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”.

“Furthermore, we believe that natural gas and liquid storage at this location will help unlock further industrial development near Corpus Christi and Brownsville”, Ferries added.

Jonathan Harms, DRW energy managing director for origination, said, “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 [liquefied natural gas] development and strengthen the pipeline between the U.S. and Mexico”.

“We see substantial new supply and demand coming to this area and we see no asset better positioned to help producers and consumers navigate the local market volatility”, Harms added.

Vecino is a portfolio company of San Antonio, Texas-based EnCap Flatrock Midstream. Vecino was established 2022.

Vecino’s current operations involve managing natural gas midstream assets in south central Oklahoma and North Texas that are owned by another EnCap Flatrock Mistream company, Candor Midstream. Candor’s assets include the Lazarus pipeline and the Vesta gas gathering system.

Stretching about 100 miles, the Lazarus pipeline links Oklahoma’s SCOOP shale play to North Texas’ gas processing complex.

The Vesta gathering system provides low-pressure gathering services with access to several gas processing facilities.

To contact the author, email [email protected]

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