‘The value of storage is on the rise’: Three new caverns for Tres Palacios, another 25 Bcf of Gulf Coast gas storage

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Economy

Enbridge’s Texas facility expansion to serve growing LNG exports and power generation facilities

Tres Palacios will soon have tres nuevas cavernas.

And Enbridge will soon have a larger share of U.S. Gulf Coast (USGC) natural gas storage capacity.

Enbridge announced on May 8, during our 2026 Q1 financial results, that we’ve sanctioned a 25-billion-cubic-feet (Bcf) expansion of our Tres Palacios Gas Storage facility in Matagorda County, Texas.

The US$400-million expansion will serve rising LNG export demand in the USGC—and follows closely on the heels of previously announced expansions of our Egan, LA and Moss Bluff, TX gas storage facilities.

The Tres Palacios expansion will “offer supply optionality to customers and serve demand needs from the significant growth in LNG and power generation facilities entering service across the Gulf,” Enbridge President and CEO Greg Ebel said during our Q1 earnings call.

This Tres Palacios development involves the addition of three new salt caverns and associated infrastructure, and is expected to enter service ratably between 2028 and 2030, bringing facility storage up to about 64 Bcf.

In mid-2025, Enbridge was already an important USGC gas storage player with 10% of available storage capacity.

Since then, November expansion announcements for Egan (an additional 16 Bcf) and Moss Bluff (an extra 7 Bcf), combined with this latest Tres Palacios announcement, will bring capacity at our four USGC storage facilities up to about 150 Bcf by 2033.

“Looking at the fundamentals over the past 10 years, the ratio of storage to production and demand in the U.S. has been cut in half,” Enbridge’s Matthew Akman, Executive Vice President and President of our Gas Transmission business, said during our Q1 earnings call.

The value of storage is on the rise,” added Mr. Akman. “With this new Tres Palacios expansion, we've got almost 50 Bcf under construction in the Gulf Coast coming on over the next five years or so.”

Tres Palacios is a salt-cavern storage facility—a man-made cavern created by dissolving underground salt deposits, which allows for rapid response during short-term peak use.

Tres Palacios offers the flexibility of 15 interconnections with access to 13 major pipelines, including Enbridge’s Texas Eastern Transmission pipeline, to reach markets in the Gulf Coast and Midwest. Product can be injected into and withdrawn from the caverns several times a day.


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"The value of storage is on the rise . . . With this new Tres Palacios expansion, we've got almost 50 Bcf under construction in the Gulf Coast coming on over the next five years or so."
Matthew Akman
Enbridge Executive Vice President
and President, Gas Transmission

Enbridge U.S. Gulf Coast gas storage expansion: Why it matters

  • Enbridge sanctioned a 25 Bcf expansion at Tres Palacios, increasing U.S. Gulf Coast gas storage as LNG exports and power demand continue to grow.
  • Three new salt caverns will raise Tres Palacios capacity to about 64 Bcf, improving short‑term flexibility and responsiveness during peak demand periods.
  • The project strengthens Enbridge’s Gulf Coast storage presence, where we already held roughly 10% of regional gas storage capacity.
  • Combined with other Gulf Coast expansions, total Enbridge storage capacity is expected to approach 150 Bcf by 2033, supporting evolving U.S. gas market fundamentals.