Vecino Power Companions LLC has signed an settlement with DRW Power Buying and selling LLC to construct hydrocarbon storage providers on the Piedras Pintas salt dome in Duval County, Texas.
Part 1 is deliberate to have two pure gasoline storage caverns, related infrastructure and a brand new 40-mile pipeline connecting the mission to the gasoline hub in Agua Dulce. The storage caverns are deliberate to start out service 2028 and 2029.
“Vecino controls sufficient floor and mineral pursuits to develop each a gasoline and liquids storage enterprise rivaling the premier services on the Gulf Coast with room for over 50 billion cubic ft of high-deliverability pure gasoline capability, over 100 million barrels of liquids storage or a mixture thereof”, stated a joint assertion Tuesday.
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“The mission will provide connectivity to Agua Dulce and be the closest salt dome storage to Corpus Christi, Brownsville and Mexico”.
The assertion stated, “DRW will function the anchor buyer for the mission, underwriting the gasoline caverns in Part I”.
“DRW, with its deep market experience, will even play a key position in guaranteeing the mission’s success as a serious shipper and investor within the area”, the assertion added.
“This mission underscores DRW’s dedication to advancing power infrastructure alongside the Texas-Mexico border and its strategic concentrate on offering progressive, market-driven options to the power business”.
Nelson Ferries, Vecino govt vp for origination, stated, “Pure gasoline volatility continues to be an actual problem for producers, entrepreneurs and industrial customers, and this facility is particularly designed to navigate these short-term market dislocations”.
“Moreover, we imagine that pure gasoline and liquid storage at this location will assist unlock additional industrial growth close to Corpus Christi and Brownsville”, Ferries added.
Jonathan Harms, DRW power managing director for origination, stated, “We imagine this mission presents a possibility to assist strengthen the power infrastructure on this vital a part of the US, offering further pure gasoline storage to spur future LNG [liquefied natural gas] growth and strengthen the pipeline between the U.S. and Mexico”.
“We see substantial new provide and demand coming to this space and we see no asset higher positioned to assist producers and shoppers navigate the native market volatility”, Harms added.
Vecino is a portfolio firm of San Antonio, Texas-based EnCap Flatrock Midstream. Vecino was established 2022.
Vecino’s present operations contain managing pure gasoline midstream property in south central Oklahoma and North Texas which can be owned by one other EnCap Flatrock Mistream firm, Candor Midstream. Candor’s property embody the Lazarus pipeline and the Vesta gasoline gathering system.
Stretching about 100 miles, the Lazarus pipeline hyperlinks Oklahoma’s SCOOP shale play to North Texas’ gasoline processing complicated.
The Vesta gathering system offers low-pressure gathering providers with entry to a number of gasoline processing services.
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