Federal regulators have authorized the first phase of construction for the Black Bayou Energy Hub, a $1.6 billion natural‑gas storage project on a 720‑acre site in Cameron Parish, Louisiana. The approval, issued by the Federal Energy Regulatory Commission (FERC) on Oct. 20, allows Black Bayou Gas Storage LLC – a subsidiary of Black Bayou Energy Hub – to begin building above‑ground structures, well pads and leaching plants needed to carve storage space in a subterranean salt dome.
Local economic impact
Louisiana Economic Development (LED) announced that the state will provide $1 million in infrastructure improvements and workforce assistance, and the project is expected to qualify for the state’s High Impact Jobs and Industrial Tax Exemption programs. LED estimates the development will create 23 direct jobs and 35 indirect jobs across southwest Louisiana and Acadiana, with more than 1,000 temporary construction jobs at peak activity.
Project details
The hub will connect directly to ten major interstate natural‑gas pipelines, supplying utilities, industrial manufacturers and ten liquefied natural‑gas (LNG) export plants within a 25‑mile radius. The facility’s design allows it to withdraw up to 1.6 billion cubic feet of gas per day for storage when supplies are abundant, and to deliver up to 2 billion cubic feet per day back into the regional market during extreme weather events, helping to moderate price spikes.
Construction will include a high‑capacity compressor station and 18 freshwater and salt‑water disposal wells required to create the underground caverns. The project also received a capacity amendment from FERC, raising its working‑gas capacity from 34.7 billion to 44.4 billion cubic feet.
Strategic significance
“Receiving FERC certification is a key inflection point for the Black Bayou Energy Hub,” said Boris Bystrov, managing director of investments at global energy trader Mercuria, which backs the project. “Strategic infrastructure projects like this are essential to our broader mission of enhancing market efficiency and supporting the energy transition.”
Louisiana Economic Development Secretary Susan B. Bourgeois highlighted the broader context, noting that more than $48 billion in LNG projects have been announced in the state since 2024. She said the Black Bayou hub “strengthens the natural‑gas infrastructure that will serve major projects already underway while increasing Louisiana’s capacity to compete for what comes next.”
Timeline
The developer expects commercial storage to begin in two salt caverns by 2028, with construction on all four planned caverns extending through 2030.
This approval underscores the federal government’s support for energy projects that enhance reliability, create jobs, and position Louisiana as a key player in the nation’s evolving energy landscape.
Original reporting: KTBS 3 (Shreveport) — read the source article.
