SEI Energy Consulting has been engaged by New Gulf Midstream, LLC to market both the Brookside Salt Dome Storage Project and the Driftwood Reservoir Storage Project.
The Brookside Salt Dome Storage Project is a fully-permitted, de-risked partially-completed storage project located near the Bethel Hub in Anderson County, Texas. Brookside will be a high-deliverability storage facility with a total working inventory of 20 BCF (with the ability to expand to 40 BCF). The facility covers 151 acres with a withdrawal capability of 1,200 MMcfd, and an injection capability of 600 MMcfd. Brookside has been permitted for up to 12 turns per year and is ideally situated in close proximity to 15,000 MW of gas-fired generation and has access to 5 major Texas intrastate pipelines. Over $50MM has already been invested in the project. Completion of the project will consist of leaching caverns, adding compression, and facilitating pipeline connections.
The Driftwood Storage Project, also partially complete, is a 10 BCF depleted reservoir storage facility located in Alfalfa County, OK. The project has 110 MMcfd withdrawal capability, and an injection capability of 45 MMcfd. Project upside includes an estimated condensate yield that is between 10-20 bbls/MMcf. Driftwood covers 4,361 acres with 7 wells (currently shut-in) over the reservoir, including 1 salt water disposal well. Driftwood is within 3 miles of both Southern Star and OneOk pipelines. Part of the appeal of the project is its qualification for up to $20MM of tax credits for Qualified Equity Investments.