Caliche Development announces natural gas liquid storage project in Beaumont

11/1/2017

HOUSTON -- Caliche Development Partners, LLC announced today that service is set to begin in third-quarter 2018 for the initial NGL storage project at its recently-acquired subsidiary, Coastal Caverns, Inc.

The site is now known as Caliche Coastal. Caliche Coastal's fully-permitted, salt cavern storage facilities sit on 53 acres atop Spindletop Dome in Beaumont, Texas, with an additional 345 acre brine pond site less than four miles 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 MMlb of ethylene and provides 600,000 lb/hr 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. 

"Caliche is excited to become a stakeholder in the historically significant and economically strong community of Beaumont and the surrounding area," said Dave Marchese, Chief Executive Officer of Caliche Development Partners, LLC.  "We believe Caliche Coastal responds to immediate customer needs and the growing infrastructure in Beaumont/Port Arthur and the Gulf Coast Region. Caliche Coastal is unique in that it will not perform any marketing activities and will focus solely on the needs of customers who require reliable deliverability of their products from storage."

The Caliche Coastal facility is strategically located with nearby access to pipelines, truck, rail, and dock facilities.  Within a 12-mile radius are 10 dock facilities for barge or ship access, nine of them suitable for deep water vessels.  Additionally, within a 10-mile 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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