City Council Approves Agreements Supporting Proposed Gas Storage Facility

 At today’s regularly scheduled City Council meeting, the Council approved real estate agreements supporting the proposed development of the Corpus Christi Gas (CCGAS) Underground Natural Gas Storage facility, a long-term infrastructure project designed to aid CCGAS in securing reliable and affordable gas for customers.

Other major key benefits of the project include:

· Customer Savings: Direct reduction in cost for CCGAS customers

· Rate Stability: Protection from seasonal spikes in gas market prices

· Growth: A strategic asset to provide long-term growth potential

· Long-term Asset: Infrastructure investment with a 30+ year operational lifespan

The action will authorize the execution of two real estate contracts associated with the proposed project, including approximately 3,021 acres of property over an underground pore space designated for natural gas storage. The acquisition will satisfy a key requirement for pursuing permitting of the facility through the Texas Railroad Commission.

Originally added to the City’s Capital Improvement Program in 2021, the Underground Natural Gas Storage Facility's primary purpose is to store gas when rates are low and withdraw when rates are high, reducing the risk of volatile gas price surges.

The project is designed to support long-term energy stability while reducing exposure to price fluctuations caused by extreme weather events and supply disruptions.

Following a two-year feasibility study and reservoir analysis process, CCGAS identified an ideal reservoir near the Agua Dulce Hub as the preferred location for the facility. The Agua Dulce Hub is one of the most active natural gas trading hubs in South Texas and provides direct access to major Permian Basin natural gas infrastructure. The facility will be the first underground natural gas storage operation in South Texas.

With City Council approval, the project will move into additional permitting, final design, and construction.

For additional information about CCGAS and ongoing initiatives, visit www.ccgas.com.