Vecino Energy and DRW Join Forces on Texas Gas Storage Project

Vecino Energy Partners, LLC, a portfolio company of EnCap Flatrock Midstream, has partnered with DRW Energy Trading LLC to develop a greenfield hydrocarbon storage project on the Piedras Pintas Salt Dome in Duval County, Texas. This collaboration was formalized in a Memorandum of Understanding, and the project will create a state-of-the-art intrastate natural gas storage service facility. The planned facility will boast over 50 billion cubic feet of high-deliverability natural gas capacity and more than 100 million barrels of liquids storage or a combination thereof. Key connectivity to the Agua Dulce hub will be established via a 40-mile pipeline. Scheduled for multiple phases, the project's initial phase includes the construction of two natural gas storage caverns, expected to be operational in 2028 and 2029, subject to final investment decision and requisite approvals. DRW will be the anchor customer, playing a pivotal role in both underwriting and ensuring the project's success as a major shipper and investor. This initiative is significant for strengthening energy infrastructure along the Texas-Mexico border, addressing natural gas volatility issues, and spurring potential LNG development near Corpus Christi and Brownsville.