After more than a decade of lackluster performance, natural gas storage assets are back in vogue, and thriving. Natural gas storage capacity additions continue to rise- but still substantially short of requirements. ~463 billion cubic feet “Bcf” of storage capacity is in various stages of development in the USGC supported by operational needs and improved lease rates. Included in the development funnel are under-construction and sanctioned projects that are expected to add ~194 Bcf working gas storage capacity in USGC by YE 2035.

Recent announcements validate commercial tailwind and the growing need for highly responsive gas storage services.

• Caliche’s FID for the first phase of its 31 Bcf Spindletop expansion (which included 2 caverns) underscores strong customer demand for Gulf Coast storage; and
• Kinder Morgan continued development of its NGPL Gulf Coast Storage Expansion, adding roughly 10 Bcf of storage while creating additional firm storage service (NSS) capacity for Gulf Coast customers.
• Pickton Gas Storage located near Dallas obtained financing and is now under construction.
• Enbridge sanctioned a 25-billion-cubic-feet (Bcf) expansion of our Tres Palacios Gas Storage facility in Matagorda County, Texas. This follows closely on the heels of previously sanctioned expansions at Egan, LA and Moss Bluff, TX gas storage facilities.
• Sempra had a successful open season for LA Storage and there are multiple open seasons for greenfield and brownfield expansions underway to solicit customer interest.  

The graphic below highlights growing trend towards development of brownfield sites that can provide high-cycle and responsive gas storage service in the U.S. Gulf Coast. However, there has been a noticeable increase in greenfield sites that we are tracking very closely, which represents a tipping point for FSS lease rates.

Enkon Energy Advisors have released the 2026 natural gas storage multi-client study which provides in depth analysis of gas storage markets and dynamics, valuable commercial insights, and assessment of investment outlook for natural gas storage in the U.S.

Key highlights include:

• FSS lease rates across U.S. Gulf Coast are rising.
• Ample head room for FSS rates to grow as economics for greenfield capacity remain higher than prevailing FSS rates.
• USGC is structurally short storage with intense competition amongst customers to secure capacity under long-term commitments.
• Sizable brownfield capacity is in various stages of development; however, storage needs far exceed planned capacity additions thus reducing future investment risk.

To find out more about the multi-client study, please click HERE