Black Bayou plans $1.6 billion Louisiana gas infrastructure project

Black Bayou Energy Hub plans to invest $1.6 billion in new natural gas infrastructure in southwest Louisiana, developing a storage and transportation system intended to serve LNG exporters, power generators, utilities and pipeline operators along the Gulf Coast.

The project will be centered on the Black Bayou salt dome in Cameron Parish, with infrastructure extending into neighboring Calcasieu Parish. Black Bayou said the development will provide natural gas blending, balancing, storage and transportation services.

Construction is expected to begin in the fourth quarter of 2026, with commercial operations targeted for late 2028.

Black Bayou said the investment is intended to increase the movement, storage and delivery of natural gas across the Gulf Coast while adding capacity and connectivity to Louisiana’s existing energy infrastructure.

The development comes as new and expanding LNG export projects drive additional demand for natural gas infrastructure in southwest Louisiana. Louisiana Economic Development said more than $48 billion in LNG projects have been announced in the state since 2024.

Storage project centered on salt dome

Black Bayou Energy Hub was established to develop natural gas infrastructure around the Black Bayou salt dome. The Lafayette-based company is backed by energy and commodities company Mercuria as its majority equity sponsor.

“With support from the state and our controlling investor, Mercuria, Black Bayou is positioned to grow in Louisiana,” Black Bayou CEO Tad Lalande said. “We know they are committed to Louisiana’s leadership in developing safe and reliable energy infrastructure that is essential for economic stability and growth in the region.”

The project holds a Federal Energy Regulatory Commission Certificate of Public Convenience and Necessity, according to the company.

The development is designed to support growing natural gas demand from LNG exporters as well as regional power generation, utility and industrial customers. Black Bayou said the storage and transportation infrastructure will provide additional flexibility for moving gas through the region as LNG export capacity increases.

Headquarters expansion included

The $1.6 billion investment also includes an expansion of Black Bayou’s headquarters in Lafayette to support administrative, engineering and operational functions associated with development of the project.

Across the Cameron Parish project and Lafayette expansion, Black Bayou expects to create 23 direct jobs and retain five existing positions. Louisiana Economic Development estimates another 35 indirect jobs could be created, while construction employment is expected to exceed 1,000 workers at its peak.

Louisiana has offered Black Bayou an incentive package that includes workforce development assistance and $1 million through the state’s Economic Development Award Program for infrastructure improvements. The company is also expected to participate in state jobs and industrial tax incentive programs.