Caliche Announces FID for First Phase of Spindletop Expansion

Decision Comes Weeks After FERC Approval, Amid Rising Demand for Natural Gas Storage

HOUSTON, June 4, 2026 /PRNewswire/ -- Caliche Development Partners III ("Caliche"), through its subsidiary Golden Triangle Storage, LLC ("GTS"), achieved a Final Investment Decision ("FID") on the first phase of its Spindletop Expansion Project in Beaumont, TX yesterday.  The decision by Caliche, a Sixth Street portfolio company, comes shortly after the project received a Federal Energy Regulatory Commission ("FERC") certificate of public convenience and necessity, and will be funded through debt financing from MUFG.  The project aligns with GTS' third and fourth gas cavern expansions, which are expected to be completed in 2027. These FERC-approved expansions from 2024 were reinforced by a recent open season that was nearly six times oversubscribed, demonstrating strong customer demand and commitments.  This announcement also coincides with rising demand for natural gas storage, driven by LNG exports, geopolitical pressures, electrification, and the growing energy needs of AI infrastructure.   

This phase will include the construction of two new salt dome storage caverns and related surface facilities, as well as interconnects to Kinder Morgan's Trident and ARM's Mustang pipelines.  At full buildout (which will include a future FID for the remaining two FERC approved storage caverns), the Golden Triangle Storage complex will provide over 60 Bcf of capacity, with injection rates up to 2.2 Bcf per day and withdrawal rates of 2.5 Bcf per day across eight caverns—making it the largest natural gas storage hub on the Gulf Coast.  Expanded operations are expected to commence in late 2028 and continue into early 2029.  

"We've been encouraged not only by FERC's recognition of the critical need for additional storage to strengthen the reliability of the nation's natural gas and electric systems, but also by FERC accessibility and ongoing engagement throughout the approval process," said Sam Wallace, Chief Commercial Officer of Caliche.  "Given the strong customer response to our latest open season, we expect to fully subscribe both caverns in our current expansion and to move forward with two future phases.  We look forward to continuing our collaboration with FERC to bring everything to fruition."

About Caliche
Caliche is an acquisition and development company focused on the underground storage of natural gas, industrial gases like hydrogen and helium, and carbon sequestration. Based in Houston, TX, Caliche's projects are located in Jefferson County on the US Gulf Coast (Golden Triangle Storage, GTS and Caliche CO2 Sequestration) and in Colusa County, CA (Central Valley Gas Storage, CVGS). The Caliche management team previously developed and sold its underground storage business (Coastal Caverns) on the historic Spindletop salt dome in Beaumont. https://calichestorage.com

About Sixth Street
Sixth Street is a global investment firm with over $130 billion in assets under management and committed capital. The firm uses its long-term flexible capital, data-enabled capabilities, and One Team culture to develop themes and offer solutions to companies across all stages of growth. Founded in 2009, Sixth Street has more than 750 team members including approximately 300 investment professionals around the world. For more information, and additional disclosures, visit www.sixthstreet.com, and follow Sixth Street on LinkedIn.

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SOURCE Caliche Development Partners III