Houston-based energy infrastructure company Kinder Morgan has announced plans to expand the working gas storage capacity at its Markham gas storage facility in Matagorda County, located along the Texas Gulf Coast.

Kinder Morgan has entered into an agreement with Underground Services Markham, LLC, a subsidiary of Texas Brine Company LLC, to lease an additional cavern at the Markham facility. This expansion will provide over six billion cubic feet (Bcf) of incremental working gas storage capacity and 650 million cubic feet per day (MMcf/d) of incremental withdrawal capacity on Kinder Morgan’s extensive Texas intrastate pipeline system.

The gas storage project has already attracted significant interest, with anchor shippers securing approximately half of the available capacity through long-term agreements. The commercial launch of the expanded facility is expected to take place in January 2024.

Before the expansion, the Markham gas storage facility boasted a working gas storage capacity of 21.8 Bcf. It had the capability to deliver up to 1.1 Bcf/day of natural gas, with multiple receipt and delivery points on Kinder Morgan’s extensive Texas intrastate system, which spans nearly 7,000 miles.

The decision to expand the Markham facility comes in response to the growing demand for natural gas storage capacity in the region. The Gulf Coast area is a critical hub for the energy industry, and the increased capacity at Markham will support the storage and distribution needs of various stakeholders.

Kinder Morgan’s expansion project at the Markham gas storage facility is a significant investment in meeting the rising demand for natural gas storage infrastructure. The company’s extensive pipeline system and strategic location along the Texas Gulf Coast position it well to support the energy needs of industries, businesses, and communities in the region.

Tom Dender — Kinder Morgan Natural Gas Midstream President said: “During Winter Storm Uri, KMI’s storage portfolio was critical to supplying human needs customers in Texas while also providing much needed supply to numerous electric generation facilities during the storm. We are pleased to increase our natural gas storage solutions to further support Texas customers, particularly during severe weather events.

“Storage capabilities on highly utilized assets are critical to support Texas’ ability to respond to an energy crisis and ensure energy reliability as renewables become a greater portion of the state’s energy mix. This expansion will provide much needed capacity that could supply gas-fired electric generation facilities within ERCOT and provide electric service to well in excess of one million homes in Texas.”

  Kinder Morgan, Matagorda County, Oil and gas industry news, Oil and gas news, Texas, Tom Dender, USA