Tailwater Backs Pickton as 35-Bcf Texas Gas Storage Project Reaches FID
Pickton Gas Storage has reached FID on a 35-Bcf storage project and new trading hub in Northeast Texas, with startup planned for spring 2028.
(P&GJ) — Pickton Gas Storage has reached a final investment decision on a 35-Bcf natural gas storage facility and transportation hub in Northeast Texas, with commercial operations expected to begin in spring 2028.
Tailwater Capital also invested in Pickton and said the project secured a construction financing package to support development. The initial phase is fully contracted.
The project will convert a depleted reservoir into a high-deliverability storage field with 35 Bcf of working gas capacity. It will also include the Paris Hub, a new natural gas trading and transportation hub in Paris, Texas.
The hub will have bidirectional interconnections with five large-diameter intrastate and interstate pipelines, linking supply basins with demand centers across Texas and the Gulf Coast.
Pickton is led by the former management team of NorTex Midstream Partners, which previously operated a major natural gas storage hub serving the Dallas-Fort Worth area. Williams acquired NorTex in 2022.
Sulphur River Gathering contributed the reservoir and related infrastructure assets to Pickton and will continue working with the company during construction and commercialization.
“Achieving FID reflects the confidence of our customers, lenders and investors in both the asset and our team,” Pickton CEO John Holcomb said. “With a strategic location and experienced team, we believe Pickton will play an important role in serving Texas’ growing energy needs.”
Tailwater said growing gas demand from power generation, industrial activity and economic expansion is increasing the need for additional storage infrastructure in Texas.
“Storage infrastructure plays a critical role in balancing supply and demand, supporting grid reliability and providing market flexibility,” said Scott Peters, managing director at Tailwater.
Tailwater made the investment through Tailwater Fund V and a direct co-investment vehicle.
The project financing includes a construction term loan led by Investec Inc., with Deutsche Bank AG, Starwood Infrastructure Finance, BankUnited and BOK Financial also participating. Financial terms were not disclosed.