Vecino Energy, DRW Energy to Develop South Texas Gas Storage

Vecino Energy, a portfolio company of EnCap Flatrock Midstream, and DRW Energy Trading have signed a Memorandum of Understanding (MoU) to advance the Piedras Pintas Salt Dome project, a hydrocarbon storage facility in South Texas.  

The project will provide intrastate natural gas storage services with a direct connection to the Agua Dulce natural gas hub. Located in Duval County, Piedras Pintas is positioned to serve Corpus Christi, Brownsville, and Mexico.  

Once the final investment decision (FID) is made and definitive agreements are executed, Vecino plans to construct the greenfield facility, which could offer over 50Bcf of high-deliverability natural gas capacity, more than 100MMb of liquids storage, or a combination of both.  

Development will proceed in phases, with Phase I focused on building two natural gas storage caverns, supporting infrastructure, and a 40-mile pipeline linking the site to the Agua Dulce hub. The anticipated in-service dates for the Phase I caverns are 2028 and 2029, subject to FID and regulatory approvals.  

DRW Energy will serve as the anchor customer for the project, underwriting the gas storage caverns and contributing market expertise to ensure success. DRW’s involvement underscores its commitment to enhancing energy infrastructure along the Texas-Mexico border and addressing market volatility.  

“This project presents an opportunity to strengthen energy infrastructure in this critical region, providing additional natural gas storage to support LNG development and bolstering the pipeline between the U.S. and Mexico,” said Jonathan Harms, Managing Director of Energy Origination for DRW.  

Nelson Ferries, Vecino’s Executive Vice President of Origination, highlighted the project’s role in managing market dislocations. “Natural gas and liquid storage at this location will help unlock further industrial development near Corpus Christi and Brownsville,” Ferries said.  

The Piedras Pintas project is expected to address market volatility and spur industrial growth, particularly in energy-intensive sectors, while enhancing energy connectivity between Texas and Mexico.