Vecino Energy Partners and DRW Energy Trading have signed an MOU to develop the Piedras Pintas Salt Dome in Texas, aimed at enhancing natural gas storage capacity and improving market stability.

Information on the Target

Vecino Energy Partners, LLC, a portfolio company of EnCap Flatrock Midstream, is poised to spearhead the development of the Piedras Pintas Salt Dome, a project aimed at offering intrastate natural gas storage services. This facility, located in Duval County, Texas, will leverage the significant surface and mineral rights controlled by Vecino, enabling the creation of a storage business capable of rivaling other premier storage facilities along the Gulf Coast.

The Piedras Pintas project is designed with a substantial capacity, featuring the potential to store over 50 billion cubic feet (Bcf) of high-deliverability natural gas along with more than 100 million barrels (Mmbbls) of liquid storage. Furthermore, this facility will provide connectivity to Agua Dulce, positioning itself as the closest salt dome storage site to major markets, including Corpus Christi, Brownsville, and Mexico.

Industry Overview in Texas

Texas is a leading hub for energy, particularly natural gas, due to its vast reserves, well-established infrastructure, and significant investment in energy projects. The state's geography and regulatory environment make it an attractive location for