Trinity Gas Storage secures $189m for East Texas natural gas facility
Trinity Gas Storage, LLC has successfully secured a staggering $189 million for the groundbreaking of its natural gas storage facility in East Texas. The funding comes through an equity partnership with Transition Equity Partners, LLC (“TEP”), and a debt financing round led by Investec. The financial boost promises to be a game-changer for energy security and electrical reliability in Texas.
Investment Consortium and Financial Details
Other key players in the equity consortium include Pan Capital Management, Abrdn, SailingStone Capital Partners LLC, and Rice Investment Group. The enormous funding package aims to accelerate the development and operationalization of Trinity’s natural gas storage facility. Construction is scheduled to commence immediately, with operations expected to begin in mid-2024.
Strategic Importance and Capacity
Located strategically in Texas’ heartland, the new facility will initially offer approximately 24 billion cubic feet (Bcf) of natural gas storage capacity. Trinity is geared to serve as a buffer, balancing supply and demand for natural gas and ensuring uninterrupted service during peak electricity demand.
Quotes from Stakeholders
“We are thrilled to commence construction on this much-needed storage facility,” said Jim Goetz, CEO of Trinity. “This project will enable Texas to better manage energy supply fluctuations, ensuring a stable source of power even during periods of peak demand and extreme weather events.”
“This storage project represents a critical transitional component for the diverse energy portfolio needed in ERCOT,” commented Pat Eilers, Founder and Managing Partner of TEP. “This natural gas storage facility aligns perfectly with our commitment to advancing sustainable and resilient energy solutions.”
Long-Term Benefits and Future Operations
With its central location and connections to existing pipeline infrastructure, Trinity’s natural gas storage facility is well-placed to enhance the energy infrastructure across Texas. Scheduled for Phase 1 operations in mid-2024, the facility aims to meet the growing energy demands of the industry, offering both reliability and security for years to come.
Trinity Gas Storage is a pioneering project designed to bolster Texas’ energy infrastructure. With its strong team of industry professionals and backing from Transition Equity Partners, the project stands as a monumental step towards ensuring a stable and reliable supply of natural gas in the region.