(Alton Wallace, The Center Square) — A Louisiana-based natural gas storage company backed by international energy trading firm Mercuria has announced a $1.6 billion expansion of the Black Bayou salt dome and related infrastructure near about a dozen major LNG export facilities.

Headquartered in Lafayette, Black Bayou Energy Hub is developing pipeline connections in Cameron and Calcasieu Parishes to salt dome storage caverns capable of holding 34.7 billion cubic feet of gas. Switzerland-based Mercuria, the company’s partner in the project, is one of the world’s largest energy trading firms.

The developers of the Black Bayou hub initially secured a $50 million capital commitment from Mercuria in October 2025, when the project received final approvals from federal regulators.

“With support from the state and our controlling investor, Mercuria, Black Bayou is positioned to grow in Louisiana,” Black Bayou Energy Hub CEO Tad Lalande said.

The four storage caverns under development at the Black Bayou salt dome sit within the Gulf Coast LNG corridor between Lake Charles, Louisiana, and Port Arthur, Texas. The project site is located about 12 miles west of the federal government’s West Hackberry Strategic Petroleum Reserve (SPR) salt dome site.

“More than $48 billion in LNG projects have been announced in Louisiana since 2024, and investment at that scale creates demand for the infrastructure and businesses needed to support it,” Louisiana Economic Development Secretary Susan B. Bourgeois said. “Black Bayou Energy Hub is a direct result of that momentum and an investment in sustaining it. This project strengthens the natural gas infrastructure that will serve major projects already underway while increasing Louisiana’s capacity to compete for what comes next.”

While the initial focus is natural gas, the salt domes could also serve as storage for other energy products such as crude oil, propane, butane, and hydrogen.

Louisiana Governor Jeff Landry said the Black Bayou investment reinforces the state’s place at the center of America’s energy future. “Louisiana doesn’t just produce energy — we build the infrastructure that makes America’s energy economy possible,” Landry said.

The company expects the expansion will create 23 direct new jobs, including 17 positions at the Cameron Parish site and six corporate positions in Lafayette commanding an average annual salary of $195,000. Louisiana Economic Development estimates the investment at Black Bayou will result in an additional 35 indirect new jobs for a total of 58 potential full-time job opportunities across the Southwest and Acadiana regions.

The state of Louisiana offered Black Bayou an incentives package that includes participation in the LED FastStart workforce development program, along with a $1 million grant from the Economic Development Award Program for infrastructure improvements. The company is also expected to participate in the state’s High Impact Jobs and Industrial Tax Exemption Programs, according to the state economic development agency.

At the peak of construction, more than 1,000 workers will be employed, Black Bayou projects. Construction is expected to begin in the fourth quarter of 2026, with full commercial operations anticipated in late 2028.