CAMERON PARISH, La. — A planned $1.6 billion natural-gas storage hub in southwest Louisiana has crossed from permitting into construction after federal regulators authorized Black Bayou Gas Storage to begin work on key facilities tied to its underground salt-cavern project.
The Federal Energy Regulatory Commission issued a limited notice to proceed on October 20 under docket CP24-494-000. The authorization allows the Lafayette-based developer to begin construction on portions of the project, including aboveground buildings, well pads, leaching plants, a high-capacity compressor station and wells used to create and operate the underground storage caverns.
The approval is a meaningful new development for a project Cajun Conservatism previously covered when Louisiana Economic Development announced the investment. At that stage, Black Bayou was still moving through federal approvals. The latest action means physical construction can now begin on federally authorized components.
Black Bayou plans to develop four salt caverns on roughly 720 acres in Cameron Parish, about seven miles east of the Texas line. The company says the facility's working-gas capacity has been increased from 34.7 billion to 44.4 billion cubic feet through a separate capacity amendment.
The project's location is strategic. Black Bayou says the storage hub will connect directly with 10 major interstate natural-gas pipelines and sit within roughly 25 miles of 10 LNG export facilities that are operating or under construction. Those LNG plants, along with industrial facilities and power generators, create enormous swings in regional gas demand.
Underground storage is designed to help manage those swings. When supply is abundant, Black Bayou says the system could withdraw as much as 1.6 billion cubic feet per day from interstate pipelines for storage. During high-demand periods or extreme weather, the facility could deliver as much as 2 billion cubic feet per day back into the market.
The developer expects the first two caverns to begin commercial service in 2028, with construction of all four extending through 2030. Louisiana Economic Development estimates the project will create 23 direct permanent jobs and 35 indirect jobs while supporting more than 1,000 workers at peak construction.
The state previously offered Black Bayou $1 million for infrastructure improvements and workforce assistance. The company is also expected to seek benefits through Louisiana's High Impact Jobs and Industrial Tax Exemption programs.
The permanent job count is relatively small compared with the project's capital cost, but storage infrastructure plays a different economic role than a factory or office development. Its value is tied to reliability and the ability to move natural gas rapidly into and out of a region that has become one of the world's largest LNG export centers.
The October 20 construction authorization does not mean every phase of the project is complete or that all regulatory conditions have disappeared. But it moves Black Bayou beyond the announcement stage and into the physical buildout of a project intended to support Louisiana's expanding LNG and industrial corridor.
Sources
Federal Energy Regulatory Commission — Black Bayou Gas Storage docket CP24-494-000
The Center Square — federal construction authorization, Oct. 21, 2026
