BEAUMONT, Texas — Jefferson County Commissioners and Beaumont City Council members have approved tax incentives for a project that would store helium underground.
Council members unanimously voted to approve an industrial development agreement with Golden Triangle Storage, LLC. to begin a four-phase development expansion project.
The $280 million project includes two new salt dome natural gas storage caverns.
"Many industries with these caverns they look across the gulf coast and other areas where they can possibly set up those locations and it can be future tax dollars for us. So, we incentivize them so that they will pick Southeast Texas and we will get future financial benefit from it," Mayor Roy West said.
The underground facility could hold more than 14-billion cubic feet of gas, but primarily helium.
But why store helium underground?
University of Houston Professor of Earth and Atmospheric Sciences Dr. Don Van Nieuwenhuise says this method of natural gas storage is both cost efficient and safe.
"The subsurface of course you have less danger of having temperature issues. Most of the salt masses that we have in caverns formed inside these fault masses, or salt domes, are a little bit more friable and malleable, I might say, so that the issue of fracturing is less of a problem," Nieuwenhuise said.
This project will bring more than 300 construction jobs and 17 permanent jobs.
"Well here in Southeast Texas, we embrace our industry. We are well suited for it. We have the work force for it and it helps feed our economic engine because here in Southeast Texas we certainly generate additional jobs and anything that helps generate income to help fund the city and the county," West said.
Jefferson County Commissioners have also signed onto the project.
"They use those caverns that can't be permeated by whatever they're storing in there to warehouse certain materials it can be anything from oil to natural gas and in this case it's going to be, among other things, helium. We're looking forward to this because helium is a very valuable product," Jefferson County Judge Jeff Branick said.
Golden Triangle Storage, LLC. still needs final approval from federal regulators, but Tuesday's vote was a key step forward.
If all is approved, construction could start in late 2024 and the storage site could be operational in 2026.