Gulf Coast Natural Gas Storage Continues Expansion to Serve LNG Export Facilities

     The Gulf Coast area of Texas, Louisiana, and Mississippi currently hosts about 1.1 TCF of natural gas storage capacity. That capacity is set to grow as new storage capacity becomes available in the future. The buildout is occurring due to more LNG export facilities coming online. When those facilities go offline for routine maintenance or unexpected shutdowns, there is a need to have significant storage capacity available.  Most Gulf Coast gas storage is in salt caverns, which offer very good storage reservoirs. The Microsoft Copilot AI summary below shows major current expansion projects.

     By the early 2030s, that new storage capacity will be needed for LNG exporters. According to RBN Energy’s Housley Carr, owners of existing salt cavern storage facilities can make new capacity available fastest by expanding existing facilities. These brownfield expansions offer better economics for gas storage developers. Those sites also often offer better pipeline connectivity and/or higher injection and withdrawal rates. He notes that there is a massive 350BCF/day of gas storage under development.

     He notes that LNG terminal operators are willing to pay for Firm Storage Services (FSS). Carr notes that a large amount of new storage will become available later this year and through 2028, and an additional 130 BCF/day may be needed in the next five years. He also points out that power generators, including AI data centers, also draw from gas storage.

“The vast majority of the new storage projects will be brownfield expansions to existing salt cavern facilities because they (1) provide the rapid injection rates that LNG terminal operators require as well as the rapid withdrawal rates that power-plant operators need, and (2) offer more favorable economics than most greenfield projects.” 

     Carr’s article covers three storage operators: Enbridge, Caliche Storage, and Enstor. Enbridge has the most storage under development at 48 BCF/day. Caliche has nearly as much, at 45 BCF/day. These are mainly brownfield expansions of existing salt cavern storage.

“Enstor, the largest privately held gas storage company in the U.S., is planning what may be the largest salt cavern expansion project in the Gulf Coast region: a 33.5-Bcf expansion at its Mississippi Hub facility in Mount Olive, MS, which will increase the site's total capacity to more than 56 Bcf.”

     Enstor’s new capacity is expected to be online in 2028. It is increasing its injection capacity by 700MMCF/day to 1.9 BCF/day. Its withdrawal capacity will remain the same at 2.4 BCF/day.

     Carr also notes that Williams is planning 19BCF salt cavern capacity expansions in Louisiana as well as a looping project that will convert 10 BCF of cushion gas to working gas inventory at a Kinder Morgan depleted reservoir gas storage facility.

 

References:

 

Long Time – Why Brownfield Projects Have an Edge in the Ongoing Gulf Coast Gas Storage Buildout. Housley Carr. RNB Energy. October 23, 2026. Long Time – Why Brownfield Projects Have an Edge in the Ongoing Gulf Coast Gas Storage Buildout | RBN Energy