Caliche Development Partners announces natgas liquid storage project

HOUSTON — Caliche Development Partners, LLC announced the targeted date of service for the initial NGL storage project at its recently acquired subsidiary Coastal Caverns, Inc. Caliche Coastal's fully-permitted, salt cavern storage facilities sit on 53 acres atop Spindletop Dome in Beaumont, TX, with an additional 345 acre brine pond site less than 4 mi away.  When fully developed, Caliche Coastal will provide Gulf Coast NGL and olefin producers and end users up to 32 MMbbl of purpose-built, salt cavern storage facilities. 

The initial phase of the project involves engineering, construction, and customer contracting for ethylene storage service from the existing 5-MMbbl cavern.  Coastal Caverns designed and constructed this cavern prior to Caliche's acquisition, and Caliche performed sonar imaging and mechanical integrity testing on the cavern in May 2017.

This first Caliche Coastal cavern can hold up to 600 MM pounds of ethylene and provides 600,000 pounds per hour of deliverability, supported by comparable brine storage, displacement, and make-up capability. This cavern and surface facilities will be operational and available for customer deliveries during the third quarter of 2018. 

The Caliche Coastal facility is strategically located with nearby access to pipelines, truck, rail, and dock facilities.  Within a 12-mi radius are 10 dock facilities for barge or ship access, nine of them suitable for deep water vessels.  Additionally, within a 10-mi radius of the main site, there are numerous ethylene and other NGL pipelines providing customers with a variety of delivery options.  Caliche expects to develop seven additional fully-permitted storage wells, coming online at a rate of one well per year through 2025.

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