Gulf Coast Midstream Partners announced it has secured a growth capital investment and equity commitment from Black Bay Partners to advance development of the Nash Energy Storage Hub, a natural gas storage and transportation project in Southeast Texas. The project, located on the Nash Salt Dome in Fort Bend County about 30 miles southwest of Houston, is a permitted development positioned near more than 15 major inter- and intrastate natural gas pipelines.
The investment will support progress toward a final investment decision for Phase I of the project. Gulf Coast Midstream Partners previously received approval from the Texas Railroad Commission in July 2025 to develop two storage caverns with a combined working gas capacity of approximately 23 billion cubic feet.
Phase I is expected to deliver injection capacity of about 0.9 billion cubic feet per day and withdrawal capacity of roughly 1.5 billion cubic feet per day. The development will also include a large-diameter header system with seven to ten bidirectional pipeline interconnects, enabling firm and interruptible storage, balancing, wheeling, and transportation services for customers across LNG, utilities, midstream, upstream, and industrial markets.
The company plans to launch a non-binding open season for storage capacity in the second half of 2026. With funding secured ahead of a final investment decision, Gulf Coast Midstream Partners is targeting FID in the first quarter of 2027 and an in-service date around mid-2030.
Future expansion could include up to four additional salt caverns, depending on market demand and regulatory approvals, potentially increasing capacity for natural gas or natural gas liquids storage.
Legal advisors on the transaction included Troutman Pepper Locke LLP for Gulf Coast Midstream Partners and Kirkland & Ellis for Black Bay Partners.
KEY QUOTES:
“We are thrilled to be partnering with the Black Bay team on this opportunity. With Black Bay’s support, we’ve assembled a highly experienced management team to advance the Nash Energy Storage Hub to FID. Our asset is strategically located to serve key natural gas stakeholders across the LNG, power & utilities, midstream, upstream, and industrials sectors. We look forward to providing tailored natural gas storage and transportation solutions to meet the evolving needs of our customers.”
Edmund Knolle, Chief Executive Officer of Gulf Coast Midstream Partners
“Black Bay is thrilled to partner with the GCMP team in developing, commercializing, and operating this world-class natural gas storage asset. The GCMP team is led by professionals with deep industry experience in natural gas storage and infrastructure, bringing a unique level of operational and commercial expertise to this project.”
Michael LeBourgeois, Managing Partner at Black Bay Partners
“The gap between current natural gas storage capacity and projected future storage needs represents an attractive market dynamic, and the Nash Energy Storage Hub sits at the center of that opportunity.”
John Lancaster, Partner at Black Bay Partners
“The call on U.S. natural gas increases the need for more market flexibility, via gas storage, to manage rising gas demand and growing volatility.”
Sam Scofield, Principal at Black Bay Partners
