Tailwater Capital LLC is investing in Pickton Gas Storage LLC, and Pickton has reached final investment decision on a 35 billion cubic foot natural gas storage and trading hub in East Texas.
A depleted reservoir becomes a storage field
Pickton is led by the former management team of NorTex Midstream Partners, which operated one of the largest natural gas storage hubs serving the Dallas-Fort Worth Metroplex. Under Tailwater's ownership, NorTex expanded its gas deliverability and improved the reliability of the North Texas power grid by connecting directly to some of the area's largest power plants. An affiliate of Williams Companies acquired NorTex in September 2022.
Sulphur River Gathering LLC owned the underlying reservoir and related infrastructure assets that were contributed to Pickton, and will keep working with Tailwater and the Pickton team through construction and commercialization. Stephen Lipscomb, a partner at Tailwater, said the firm worked alongside this same management team at NorTex and that SRG's operating experience in East Texas makes the deal "a unique opportunity for our investors."
The project will turn the depleted reservoir into a high-deliverability storage field with 35 billion cubic feet of working gas capacity. It also includes construction of the Paris Hub, a new natural gas trading and transportation hub in Paris, Texas, with bi-directional interconnects to five large-diameter intrastate and interstate pipelines linking supply basins to demand centers across Texas and the broader Gulf Coast region.
John Holcomb, Pickton's chief executive officer, called reaching FID "a significant milestone for Pickton" that reflects confidence from customers, lenders and investors.
Financing and timeline
Pickton's initial phase is fully contracted, with commercial operations targeted for spring 2028. Tailwater is investing through Tailwater Fund V, its latest flagship infrastructure fund, alongside a direct co-investment vehicle. Investec Inc. led the construction term loan as lead arranger, sole bookrunner and administrative agent. Deutsche Bank AG and Starwood Infrastructure Finance LLC were coordinated lead arrangers, BankUnited, N.A. was depository agent, and BankUnited and BOK Financial were lenders.
Scott Peters, a managing director at Tailwater, said the growth is driven by power generation, industrial activity and broader economic expansion in Texas. He said storage helps balance supply and demand and support grid reliability.
