--Drilling operations for 14 Bcf expansion commence, kicking off plan to double capacity by 2027—

HOUSTON, Nov. 19, 2024 /PRNewswire/ -- Caliche Development Partners III recently announced that its Golden Triangle Storage ("GTS") expansion project in Beaumont, TX has achieved FID following the close of the previously announced majority investment by Sixth Street. Caliche has commenced construction for a 14 Bcf expansion to its existing natural gas storage facilities. The two new caverns are approximately 90% contracted with expected service dates in Q2 2026 and Q2 2027, respectively, and will double the total storage capacity at GTS to approximately 28 Bcf. GTS connects to seven major pipelines in the active Beaumont-Port Arthur market hub (TETCO, FGT, HPL, KM Texas, Golden Pass Pipeline, Natgasoline, and Centana), with two additional interconnects actively being pursued.

Sixth Street's partnership with Caliche marks the first gas storage build by an institutional investor in over a decade. Planned capital improvements at GTS include a brine disposal well and pads; injection/withdrawal natural gas pipelines, raw water supply pipeline, instrument air pipeline, and disposal pipeline; conduit runs for electrical and control systems; gas dehydration equipment; heaters, meters, and other process control equipment; 33,000 hp of spark-ignited reciprocating piston engine-driven compression; and new service corridors and permanent access roads.  

Construction on the world's largest helium storage cavern, located on the same site, is well underway and expected to be in service in 2025, as are Caliche's plans to build a carbon sequestration project just four miles west of GTS.

About Caliche

Caliche is an acquisition and development company focused on the underground storage of natural gas, industrial gases like hydrogen and helium, and carbon sequestration. Based in Houston, TX, Caliche's projects are located in Jefferson County on the US Gulf Coast (Golden Triangle Storage, GTS and Caliche CO2 Sequestration) and in Colusa County, CA (Central Valley Gas Storage, CVGS). The Caliche management team previously developed and sold its underground storage business (Coastal Caverns) on the historic Spindletop salt dome in Beaumont. https://calichestorage.com

About Sixth Street

Sixth Street is a leading global investment firm with approximately $80 billion in assets under management and committed capital. The firm uses its long-term flexible capital, data-enabled capabilities, and One Team culture to develop themes and offer solutions to companies across all stages of growth. Founded in 2009, Sixth Street has 600 team members including over 200 investment professionals operating around the world. For more information, follow Sixth Street on social media and visit www.sixthstreet.com.

SOURCE Caliche Development Partners III