Completion of the new cavern will increase Caliche's total operational storage capacity to 8.0 million barrels and usher in the next phase of the company's efforts to support the region's transition from a traditional energy infrastructure hub in a low emissions future.
DENVER (PRWEB) March 03, 2021
E3 Consulting was pleased to recently serve as an Independent Engineer for Caliche Development Partners, responsible for reviewing plans to expand the company’s subsurface salt cavern storage complex in Beaumont, TX. Shortly following E3’s assessment, Caliche announced the closing of a multi-draw, senior secured debt facility with Orion Energy Partners. The newly acquired capital will support a number of improvements, including the commissioning of a new 3.0 million barrel cavern for the storage of industrial gases under a long-term agreement. The cavern and accompanying terminal facility are slated to go into service during summer 2021.
The E3 Consulting team was led by Al Rettenmaier, who manages E3’s Oil, Gas & Chemicals practice. As part of the project, Al and his team performed sell-side due diligence on the Caliche assets. This included a virtual site visit and a fulsome independent engineer’s report.
“E3 was honored to be selected by Caliche for this unique and rigorous assignment. Their team was wonderful to work with and they appear to be filling a real market void. We could not be happier that they have reached a deal with Orion Energy Partners,” said Al Rettenmaier, Executive Director, E3 Consulting Services, LLC.
Completion of the new cavern will increase Caliche's total operational storage capacity to 8.0 million barrels and usher in the next phase of the company's efforts to support the region's transition from a traditional energy infrastructure hub in a low emissions future. Caliche, a portfolio company of Energy Spectrum Partners VII LP, acquired the partially completed storage complex in 2017 and currently owns and operates a 600-million-pound capacity ethylene storage cavern supporting multiple customers.
”When you work with E3, you're dealing with highly experienced professionals in a very credible shop. This combined with the fact that they had experience with similarly intricate projects to Coastal Caverns is why they were chosen to conduct an independent engineering review for our most recent fundraising,” said Dave Marchese, CEO of Caliche. "They were also able to accommodate a tight schedule without compromising thoroughness."
About E3 Consulting
E3 Consulting® (E3) is a leading technical and strategic business advisor to the worldwide energy industry, with headquarters in Denver, and offices throughout the country. Founded in 1999, E3 provides reviews of energy, industrial, and public infrastructure projects for capital providers and project developers and owners. E3 was acquired in 2014 by NAES Corporation, one of the world’s largest power management and power generation services companies for power generation services.
About Caliche Development Partners
Caliche Development Partners is a Houston, Texas-based company focused on the acquisition, development, construction, ownership, and operation of subsurface gas and liquid storage assets in North America, with a primary focus on the U.S. Gulf Coast. Caliche currently owns a 53-acre facility on the Spindletop salt dome near Beaumont, Texas, which has permits for 59 million barrels of cavern storage space, 5.0 million barrels of operational ethylene storage, and a new 3.0 million barrel cavern projected to enter service for industrial gas storage in 2021. Additional Beaumont assets include 345 acres of land with 3.5 million barrels of operational brine storage capacity and 12.5 miles of ethylene header pipeline in a right of way crossing multiple regional commodity pipelines. For more information, please visit http://www.CalicheStorage.com.
About Orion Energy Partners
Orion Energy Partners is a private capital partner to lower/middle market energy infrastructure and related companies, primarily in North America, with assets under management in excess of $2.0 billion. Orion Energy provides non-control and non-dilutive capital in flexible, senior secured loan structures as an alternative to equity investment and traditional loans. Orion Energy's target investment sectors include downstream, renewable fuels, sustainable and conventional power generation, energy efficiency, midstream, digital infrastructure, asset-heavy services, recycling, and other industrial or environmentally innovative energy opportunities. Orion Energy manages long-term, committed capital across multiple investment funds, allowing it to forge transformational relationships across a diverse group of companies and to be patient and supportive as these organizations execute on their business plans. Orion Energy aims to have more than 50% of its capital partnerships support a transition to sustainable, environmentally innovative energy businesses and practices. Please visit http://www.OrionEnergyPartners.com to learn more about our capital partnerships.