Louisiana Gas Storage Project Wins FERC Approval, Advances Toward FID
Black Bayou Energy Hub has secured FERC approval for its Louisiana gas storage project and $50 million in new funding from Mercuria, advancing the 34.7 Bcf facility toward final investment decision.
(P&GJ) — Black Bayou Gas Storage, LLC, a subsidiary of Black Bayou Energy Hub, has received a Certificate of Public Convenience and Necessity from the Federal Energy Regulatory Commission (FERC), clearing the way for construction of a major underground natural gas storage project in Cameron and Calcasieu Parishes, Louisiana.
The project includes the development of four salt dome caverns with 34.7 Bcf of working capacity, capable of delivering up to 2.0 Bcf per day and injecting up to 1.6 Bcf per day. A 27-mile looped header pipeline will connect the site to 10 major interstate pipelines, positioning the facility as one of the Gulf Coast’s most interconnected storage hubs. The site sits within 25 miles of more than 30 Bcf/d of demand from current and planned LNG facilities.
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Initial operations for Caverns 1 and 2 are targeted for 2028, with Caverns 3 and 4 expected online by 2030. FERC’s approval followed an environmental review that found no significant impacts with mitigation measures.
To advance the project, Mercuria has committed $50 million in structured capital, strengthening its role as a cornerstone investor.
“Receiving FERC certification is a key inflection point for the Black Bayou Energy Hub,” said Boris Bystrov, managing director of investments at Mercuria. “Strategic infrastructure projects like this are essential to our broader mission of enhancing market efficiency and supporting the energy transition.”
Black Bayou CEO Tad Lalande said the project is now advancing toward a final investment decision. “With strong partners and committed capital, this milestone strengthens our ability to execute at scale,” Lalande said. “We are positioning the project to meet the growing demands of LNG, power, and industrial customers across the Gulf Coast and beyond.”