In a significant step towards bolstering energy security and ensuring a reliable electricity supply for Texas, Trinity is thrilled to announce the successful equity funding from Transition Equity Partners, LLC ("TEP"), along with debt financing led by Investec who acted as Joint Lead Arranger and Administrative Agent. The equity consortium includes Pan Capital Management, Abrdn, SailingStone Capital Partners LLC, and Rice Investment Group. This funding marks a crucial milestone in the development of Trinity's natural gas storage facility which is set to play a pivotal role in fortifying energy security across the region.
The new natural gas storage facility, strategically located in the heart of Texas, will offer approximately 24 billion cubic feet (Bcf) of natural gas storage capacity in the initial phase of the project. Construction commences immediately and operations are slated to begin in mid-2024.
"We are thrilled to commence construction on this much-needed storage facility," said Jim Goetz, CEO of Trinity. "Our team has worked tirelessly to get to this point, and we recognize the immense importance of this project which will enable Texas to better manage energy supply fluctuations, ensuring a stable source of power even during periods of peak demand and extreme weather events. We're grateful to partner with TEP, whose effectiveness in securing capital and assistance in development has been invaluable in making this storage project a reality."
"This storage project represents a critical transitional component for the diverse energy portfolio needed in ERCOT," said Pat Eilers, Founder and Managing Partner of TEP. "As an investor focused on midstream energy infrastructure, we strongly believe in the role storage facilities play in enhancing reliable natural gas supply to the Texas market. We are excited to partner with the Trinity team, which has a strong track record of developing successful storage projects. This natural gas storage facility aligns perfectly with our commitment to advancing sustainable and resilient energy solutions."
The Trinity storage facility will provide a buffer to balance supply and demand for natural gas, allowing continued service even during times of peak electricity demand. With its central location and multiple connections to existing pipeline infrastructure, Trinity is ideally positioned to support reliability across the entire state.