Black Bay Invests in Gulf Coast Midstream to Advance Nash Energy Storage Hub in Texas
Gulf Coast Midstream Partners, LLC (GCMP), a privately held developer of midstream energy infrastructure, has secured a strategic growth capital investment and equity commitment from investment firm Black Bay Partners to advance the development of the Nash Energy Storage Hub. The project—formerly known as the Freeport Energy Storage Hub—is a permitted natural gas storage and transportation development planned for the Nash Salt Dome in Fort Bend County, Texas, approximately 30 miles southwest of Houston.
The investment will support the continued development of Phase I of the Nash Energy Storage Hub, helping GCMP progress toward a final investment decision (FID). With this financial backing, the company plans to advance engineering, commercial agreements, and regulatory preparations necessary to move the project into the construction phase. The Nash Energy Storage Hub is expected to play an important role in strengthening natural gas infrastructure across the Gulf Coast region, particularly as demand for reliable energy supply continues to rise in the United States.
GCMP is led by a management team with extensive experience in the midstream and energy infrastructure sectors. The company’s leadership includes Chief Executive Officer Edmund Knolle, Chief Operating Officer Hugo Guerrero, Chief Financial Officer Tyler Buckingham, Vice President of Subsurface Mike McCall, and Vice President of Land Kevin Cochran. Together, the team brings decades of expertise in natural gas storage development, subsurface engineering, and commercial operations.
The Nash Energy Storage Hub is strategically located on the Nash Salt Dome, a geological formation well-suited for underground gas storage caverns. Salt domes have long been used for energy storage due to their structural integrity and ability to safely contain large volumes of hydrocarbons. The project’s location in Fort Bend County places it near one of the most important energy corridors in North America, allowing direct connectivity to a wide network of natural gas infrastructure.
According to GCMP, the hub will be positioned near more than 15 major inter- and intrastate natural gas pipelines that serve key markets throughout Texas, Louisiana, and the broader Gulf Coast region. These pipelines transport natural gas to liquefied natural gas (LNG) export facilities, electric power plants, utilities, industrial complexes, and upstream oil and gas production areas. The proximity to these assets is expected to provide customers with significant operational flexibility and access to multiple end-use markets.
In July 2025, the Texas Railroad Commission approved Phase I of the Nash Energy Storage Hub under Statewide Rules 95 and 97, clearing the way for the project to move forward. The approval permits the development of two underground salt caverns designed for natural gas storage. Together, these caverns will provide approximately 23 billion cubic feet (Bcf) of working natural gas storage capacity.
The Phase I development will also deliver high-performance injection and withdrawal capabilities. GCMP expects the facility to support natural gas injection rates of approximately 0.9 billion cubic feet per day and withdrawal rates of roughly 1.5 billion cubic feet per day. These capabilities are designed to allow rapid storage and release of natural gas, enabling customers to respond quickly to changes in market demand, weather conditions, and supply disruptions.
In addition to storage capacity, the project will include the installation of a large-diameter header pipeline system connecting the caverns to regional natural gas networks. During the initial phase, the system is expected to feature between seven and ten bi-directional interconnections with both interstate and intrastate pipelines. These interconnections will enable the hub to provide a range of commercial services, including firm and interruptible natural gas storage, balancing services, wheeling, and transportation.
The ability to provide multiple services from a single storage hub is expected to make the Nash Energy Storage Hub an attractive option for energy companies operating across the Gulf Coast. Natural gas producers, LNG exporters, utilities, power generators, and industrial consumers often require storage solutions that can help manage supply fluctuations and seasonal demand swings. By offering flexible storage and transportation services, GCMP aims to help customers optimize their gas supply strategies while improving overall market stability.
Looking beyond Phase I, GCMP plans to expand the Nash Energy Storage Hub through additional development phases if market demand continues to grow. The company has indicated that up to four additional salt caverns could be constructed in the future. These caverns could be used for the storage of natural gas or natural gas liquids (NGLs), depending on evolving market needs and regulatory approvals.
If these expansion phases proceed, the hub could become one of the more significant underground storage facilities in the region, offering a combination of large-scale capacity and rapid injection and withdrawal performance. Such infrastructure is increasingly important as the United States continues to expand its LNG export capacity and integrate more variable energy sources into the power grid.
To help gauge market demand and secure long-term customer commitments, GCMP plans to hold a non-binding open season for firm natural gas storage capacity during the third and fourth quarters of this year. The open season process will allow potential customers to express interest in reserving storage capacity at the facility before the project reaches its final investment decision.
With the newly secured pre-FID funding from Black Bay Partners, GCMP is targeting a final investment decision for Phase I in the first quarter of 2027. If the project proceeds according to schedule, the company anticipates the facility will enter service by mid-2030.
Edmund Knolle, Chief Executive Officer of GCMP, highlighted the importance of the partnership with Black Bay in advancing the project. He noted that the investment will allow the company to continue building a highly experienced management and technical team capable of delivering the storage hub.
Knolle emphasized that the strategic location of the Nash Energy Storage Hub will enable it to serve a diverse group of energy stakeholders across several industries, including LNG exports, electric utilities, midstream operators, upstream oil and gas producers, and industrial customers. He added that GCMP is focused on delivering customized storage and transportation solutions that can adapt to the evolving requirements of the natural gas market.
Black Bay Partners also expressed strong support for the project and the GCMP leadership team. Michael LeBourgeois, Managing Partner at Black Bay, stated that the firm is excited to collaborate with GCMP in developing and operating what it views as a world-class natural gas storage asset. He noted that the GCMP management team brings extensive operational and commercial expertise to the project, positioning it well for long-term success.
John Lancaster, a partner at Black Bay, pointed to the growing gap between existing natural gas storage capacity and the projected storage needs of the market. According to Lancaster, this dynamic presents a compelling investment opportunity, particularly for infrastructure assets located in high-demand regions such as the Gulf Coast.
Sam Scofield, Principal at Black Bay, added that increasing demand for U.S. natural gas—both domestically and internationally—is driving the need for greater flexibility in the market. Gas storage facilities play a critical role in managing supply volatility and ensuring that energy systems can respond effectively to changing conditions.
The development of the Nash Energy Storage Hub comes at a time when natural gas continues to play a central role in the global energy mix. The Gulf Coast region, in particular, has emerged as a key hub for natural gas production, processing, and export. With numerous LNG terminals and pipeline networks operating in the area, additional storage capacity is widely seen as essential to maintaining reliable energy flows.
As GCMP moves forward with project development, the company aims to position the Nash Energy Storage Hub as a vital infrastructure asset supporting energy reliability, market efficiency, and long-term growth across the Gulf Coast’s natural gas ecosystem.
Legal advisory support for the transaction was provided by Troutman Pepper Locke LLP for GCMP, while Kirkland & Ellis served as legal advisor to Black Bay Partners.
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