Mercuria Invests in Black Bayou Energy Hub

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Jun 06, 2024, 11:00 ET

HOUSTON, June 6, 2024 /PRNewswire/ -- Mercuria, one of the world's largest independent energy and commodities groups, today announced an investment in Black Bayou Energy Hub LLC (Black Bayou), an underground salt dome energy storage company based in Lafayette, Louisiana. Black Bayou is developing a large-scale, underground energy storage facility in Cameron and Calcasieu Parishes in Louisiana, near the Louisiana/Texas border on the U.S. Gulf Coast. Mercuria's investment in Black Bayou will progress the development of critical, flexible, and reliable energy infrastructure needed to support the transition to a sustainable global energy future.

"Mercuria's investment in Black Bayou Energy Hub represents a significant step towards enhancing the resilience and flexibility of our energy infrastructure. This partnership leverages Mercuria's robust financial capabilities and extensive expertise in commodity markets, aligning with Black Bayou's strategic location and development potential," said Boris Bystrov, Managing Director of Investments at Mercuria. "We are committed to supporting innovative projects like Black Bayou essential for transitioning to a sustainable global energy future. Together, we aim to create a storage solution that addresses the dynamic needs of the energy sector, fostering stability and growth in the U.S. Gulf Coast region and beyond."

The Black Bayou Energy Hub is an underground salt dome storage development project located in Southwest Louisiana. Black Bayou will initially focus on FERC-regulated natural gas storage and utilize its unique location and exclusive development rights on the salt dome to pursue storage development for a wide range of energy products to meet growing customer needs.

The Black Bayou salt dome is ideally situated between rapidly growing U.S. Gulf Coast energy supply and demand centers. The project's storage facility is located seven miles east of the Louisiana/Texas border, eighteen miles north of the Gulf of Mexico coastline, and less than twenty-five miles on either side from the growing demand centers of Lake Charles, Louisiana, and Port Arthur, Texas. The project is centrally located in the heart of the U.S.'s rapidly growing "LNG Alley," which will include up to ten or more LNG export terminals and over 30 BCF/d of existing and proposed LNG liquefaction capacity.

Black Bayou's proven salt, exclusive development rights, and proximity to existing and expanding natural gas, hydrogen, crude oil, NGL, and olefin pipelines and infrastructure will allow the project to provide storage and wheeling services to a wide range of energy consumers and suppliers, helping to balance the ever-changing needs of a dynamic global energy market.

"Mercuria's investment in the Black Bayou Energy Hub creates an ideal partnership that combines Mercuria's financial strength, extensive commodity experience, and global reach with Black Bayou's unique project attributes and the team's deep expertise developing, owning, and operating underground salt dome storage projects," said Tad Lalande, Black Bayou's CEO. "We're thrilled to add Mercuria to our roster of existing sponsors, including Charlestown Energy Partners and Cameron Prairie Sporting Club, as we progress our development and bring this project to life."

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.

About Black Bayou Energy Hub

Established in 2023, Black Bayou Energy Hub LLC (Black Bayou) develops critical energy storage infrastructure in and around the Black Bayou salt dome in Cameron Parish, Louisiana. With an initial focus on FERC regulated natural gas storage development, Black Bayou's wholly owned gas storage company, Black Bayou Gas Storage LLC, will provide essential storage services to the U.S. Gulf Coast and beyond. Additionally, through its exclusive rights for energy product storage on the Black Bayou salt dome, Black Bayou pursues the development of other energy product storage facilities to serve the growing balancing needs of the global energy market. For more information about Black Bayou Energy Hub, visit us at BlackBayouEnergyHub.com.

SOURCE Mercuria