Tailwater Backs Pickton Gas Storage as 35-Bcf Texas Project Reaches FID
According to a PR Newswire release, Tailwater Capital has invested in Pickton Gas Storage LLC, a natural gas storage and infrastructure platform led by the former management team of NorTex Midstream Partners. Pickton simultaneously announced it has reached a final investment decision (FID) on its natural gas storage facility and new transportation and trading hub in East Texas, and closed a new project finance debt facility to support construction.
Market Impact
Pickton’s development will convert a depleted reservoir in Hopkins, Delta, and Lamar counties into a high-deliverability storage field with 35 billion cubic feet of working gas capacity. The project also includes construction of the Paris Hub, a new natural gas trading and transportation hub in Paris, Texas, that will feature bi-directional interconnects with five large-diameter intrastate and interstate pipelines, linking major supply basins with demand centers across Texas and the Gulf Coast.
Sulphur River Gathering LLC contributed the underlying reservoir and related infrastructure assets to Pickton and will continue working alongside the company through construction and commercialization. The initial phase of the project is fully contracted, with commercial operations targeted for spring 2028.
Financing for the project includes a newly closed construction term loan led by Investec Inc. as lead arranger and sole bookrunner, with Deutsche Bank AG, Starwood Infrastructure Finance, BankUnited, and BOK Financial also participating as lenders. Tailwater’s investment comes through Tailwater Fund V alongside a direct co-investment vehicle. Financial terms of the Tailwater investment were not disclosed.
“Texas continues to experience significant growth in natural gas demand, driven by power generation, industrial activity, and broader economic expansion,” said Scott Peters, Managing Director at Tailwater, in the release. “We believe Pickton represents one of the most attractive storage development opportunities in the country.”
The management team previously operated NorTex, which served the Dallas-Fort Worth Metroplex before Williams Companies acquired it in September 2022.
What It Means for Subcontractors
- Civil, pipeline, and facilities contractors in Northeast Texas should watch for bid packages as Pickton begins construction toward its spring 2028 startup target, given the scope includes both the storage conversion and an entirely new trading hub.
- The Paris Hub’s five pipeline interconnects mean tie-in and interconnection specialty work will be needed across multiple pipeline operators’ systems, a multi-year opportunity for contractors with interstate pipeline tie-in experience.
- Storage development in a fully-contracted first phase signals durable, funded work rather than speculative construction, reducing payment risk for subs bidding into the project.
