- Black Bayou Gas Storage, a subsidiary of Black Bayou Energy Hub, received a Certificate of Public Convenience and Necessity from the Federal Energy Regulatory Commission. - This authorization allows for the construction and operation of the Black Bayou Gas Storage Project in Louisiana. - The project will develop four salt dome storage caverns with a combined working gas capacity of 34.7 billion cubic feet. - It is designed to deliver up to 2.0 billion cubic feet per day and inject up to 1.6 billion cubic feet per day. - The storage facility is strategically located near significant LNG liquefaction operations and connected to major interstate pipelines. - Initial operations for Caverns 1 and 2 are expected in 2028, with Caverns 3 and 4 following by 2030. - FERC's approval comes after a thorough environmental review, concluding no significant environmental impact with recommended mitigation measures. - Black Bayou accepted the FERC Certificate on August 22, 2025. - CEO Tad Lalande emphasized the project's ability to execute at scale and meet growing energy demands. - Mercuria, a major energy trader, is a strategic investor in the project and will provide a fully committed financing facility. - This financing represents Mercuria's commitment to supporting critical infrastructure projects and enhancing market efficiency. - Key project features include four underground salt dome storage caverns, two bi-directional header pipelines, and a natural gas-powered compressor station. - Black Bayou Energy Hub aims to meet the demands of rapidly growing Gulf Coast energy markets. - Mercuria is a leader in the energy transition and invests significantly in renewable and transitional energy projects.

Black Bayou Energy Hub Receives FERC Certificate, Secures $50MM Structured Capital Commitment from Mercuria and Advances Toward FID

News provided by Black Bayou Energy Hub

Oct 01, 2025, 09:00 ET

LAFAYETTE, La., Oct. 1, 2025 /PRNewswire/ -- Black Bayou Gas Storage, LLC, a subsidiary of Black Bayou Energy Hub, proudly announces the receipt of a Certificate of Public Convenience and Necessity from the Federal Energy Regulatory Commission (FERC). This authorization marks a pivotal milestone, enabling the construction and operation of the Black Bayou Gas Storage Project, an underground natural gas storage facility situated in Cameron and Calcasieu Parishes, Louisiana.

The project encompasses the development of four salt dome storage caverns, offering a combined working gas capacity of 34.7 billion cubic feet (Bcf). It is designed to deliver up to 2.0 Bcf per day and inject up to 1.6 Bcf per day, providing rapid cycling capabilities to meet the dynamic demands of the energy market. The storage facility, located within 25 miles of more than 30 Bcf / day of demand from current and planned LNG liquefaction operations, is supported by a 27-mile looped pipeline header with connections to 10 major interstate pipelines, making the facility one of the most interconnected balancing and wheeling hubs in the Gulf Coast region. Initial operations for Caverns 1 and 2 are expected in 2028, with Caverns 3 and 4 following by 2030.

FERC's approval follows a comprehensive environmental review process, including the issuance of an Environmental Assessment on April 18, 2025. The assessment concluded that the project would not significantly impact the environment, provided that the recommended mitigation measures are implemented. Black Bayou formally accepted the FERC Certificate on August 22, 2025.

"With strong partners and committed capital, this milestone strengthens our ability to execute at scale, backed by the commercial depth and global market understanding needed to advance this critical infrastructure," said Tad Lalande, CEO of Black Bayou Energy Hub. "We are advancing toward FID with a contracted portfolio of strategically located gas storage assets underpinned by long term commercial agreements with a diversified portfolio of credit worthy, market leading customers, positioning the project to meet the growing demands of LNG, power, and industrial customers across the Gulf Coast and beyond."

Mercuria, one of the world's largest energy traders and a strategic investor in Black Bayou, recognizes the project as a critical enabler of energy system resilience and flexibility, reinforcing its commitment to scaling high-impact transitional energy assets across North America.

Black Bayou Energy Hub has recently mandated Mercuria to provide a fully committed financing facility, expanding Mercuria's position as a cornerstone capital provider. This financing facility exemplifies Mercuria's commitment to be a significant capital provider and highlights its capacity to deliver not only financial solutions but also commercial acumen and market access, supporting the advancement of critical infrastructure projects through FID and beyond.

"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. We are proud to back the development of this highly flexible and commercially significant asset in the heart of the U.S. Gulf Coast."

Key Project Features:Four underground salt dome storage caverns with a total working capacity of 34.7 Bcf.
Two 27-mile, 24-inch-diameter bi-directional header pipelines.
Ten interconnect metering and regulation stations.
A 44,000-horsepower natural gas-powered compressor station.
A cavern leaching plant with nine freshwater wells and nine saltwater disposal wells.

About Black Bayou Energy Hub:

The Black Bayou Energy Hub is an underground salt dome storage development project in Southwest Louisiana. Ideally located in the heart of LNG Alley and less than 25 miles from the growing industrial demand centers in Lake Charles, LA, and Port Arthur, TX, Black Bayou will provide essential transportation, storage, and balancing services needed to reliably meet the demands of the rapidly growing Gulf Coast energy markets. Its current partners include Mercuria, Charlestown Energy Partners, Cameron Prairie Sporting Club, and Tomac Cove Investment Partners.

About Mercuria

Established in 2004, Mercuria is one of the world's largest independent energy and commodity groups, bringing efficiency to the commodity value chain with technology, expertise, and low-carbon solutions. The company established itself as a leader in the energy transition by pledging more than 50 percent of new investments toward renewables and transitional energy. The Group has made significant investments in projects such as renewable power, energy storage, grid optimization, critical transition minerals recycling, and environmental products.

SOURCE Black Bayou Energy Hub