[Context: On March 8, Energy Spectrum-backed Caliche Development announced it received approval for tax abatement for up to 10 years of operation on its $270m underground storage facility. Startup is expected by 3Q18. further details and related links are below.]
Caliche Development | Energy Spectrum
Caliche Development Partners Announce Property Tax Agreements For Coastal Caverns; Agreements Provide for an Abatement of Property Taxes for up to 10 years of Operations
HOUSTON, March 8, 2018 /PRNewswire/ — Caliche Development Partners, LLC is pleased to announce agreements with the taxing authorities of Jefferson County, Texas and the City of Beaumont for development of its Coastal Caverns facility. Coastal Caverns is a fully-permitted natural gas liquids and petrochemicals salt-dome storage facility located on the Spindletop Dome in Beaumont, Texas.
Coastal Caverns could ultimately invest up to $270 million developing infrastructure for Caliche Coastal over five phases, as the tax agreements are aligned with distinct phases of the project. The project’s development and construction could generate $400 million in economic output from its construction activity, and support 234 direct and indirect construction jobs each year during the construction period. When fully developed, the facility is expected to create approximately 24 permanent jobs.
“These tax agreements are essential to our project’s competitiveness, and we are grateful to receive broad governmental support and solidify our commitment to positively impact the economic wellbeing of the County’s residents and the region’s overall economic growth,” said Dave Marchese, Chief Executive Officer of Caliche Development Partners, LLC. “We look forward to a long partnership with the local governments of Jefferson County and the City of Beaumont, as well as being an active member of the area’s business community.”
The Caliche Coastal Caverns facilities recently announced commencement of construction and are expected to be operational and available for customer deliveries beginning the third quarter of 2018.
About Caliche Development Partners, LLC
Caliche Development Partners, LLC is a Houston, Texas-based company focused on the acquisition, development, construction, ownership, and operation of subsurface hydrocarbon storage assets and related pipelines in North America, with a primary focus on the U.S. Gulf Coast. The Caliche team brings over 175 years of combined midstream asset development experience, including project finance, facility design, permitting, construction, marketing, and operations. The company has partnered with the oldest dedicated midstream private equity investor, Energy Spectrum Capital, who also brings substantial midstream experience to the Caliche board. Together, the team offers a mixture of deep industry knowledge, positioning the partnership for successful development and ownership.