Magnum Development

What Magnum Development does

Magnum Development, LLC is a Salt Lake City-based energy infrastructure developer specializing in underground storage caverns built into salt formations. The company's flagship asset is the 10,000-acre Western Energy Hub in Millard County, Utah — the only known Gulf-style salt dome in the western United States — which supports solution-mined caverns individually sized between 500,000 and 10 million barrels for the storage of natural gas, compressed air, refined products, helium, and hydrogen. Its primary commercial asset, the Magnum Gas Storage Project, holds a FERC 7(c) certificate (Docket CP10-22-000) and connects to Kern River Gas Transmission and Questar Pipeline via a 62-mile header pipeline. The company also operates Sawtooth Caverns, a joint venture with NGL Energy Partners for natural gas liquids storage, and participates in ACES Delta — a joint venture with Mitsubishi Power Americas that converts 220 MW of renewable energy into approximately 100 metric tons of green hydrogen per day, stored in salt caverns with 300+ GWh of capacity, supplying the Intermountain Power Agency's IPP Renewed power plant.

Magnum generates revenue through long-term enterprise storage contracts with utilities, energy producers, and pipeline operators (a subscription/recurring model), supplemented by pipeline transportation services structured as transaction fees. Its customer base is concentrated among large energy counterparties, and pricing is quote-based rather than publicly disclosed. The company is now a wholly owned subsidiary of Chevron U.S.A. Inc. following a September 2023 acquisition by Chevron's New Energies division, which also secured a majority interest in the ACES Delta joint venture. Magnum's strategic positioning combines a multi-decade regulatory moat (FERC, BLM, and state approvals), unique geological scarcity in the Western U.S., and substantial capital backing from Chevron, Mitsubishi Power, and a $500 million U.S. Department of Energy conditional commitment for the ACES Delta project.

Name

Magnum Development

Legal name

Magnum Development, LLC

Website

https://magnumdev.com

Company type

Private

Founded year

2011

Operating status

Operating

Short description

Magnum Development is a Chevron-owned developer of underground salt cavern storage in Delta, Utah, providing large-scale natural gas, hydrogen, compressed air, and NGL storage to utilities, energy producers, and pipeline operators across the Western U.S.

Ownership category

akta.pro rank

Product category

Energy Storage Infrastructure

NAICS

Pipeline Transportation of Refined Petroleum Products (486910)

SIC

Oil & Gas Field Services, Nec (1389), Wholesale-Petroleum Bulk Stations & Terminals (5171)

akta.pro primary industry

Underground Storage (Salt Caverns, Depleted Reservoirs) (EUALAEAE)

akta.pro secondary industries

Geologic & Underground Energy Storage (CAES Caverns, Hydrogen Caverns, Reservoir-Based) (EUAFADAF), Underground Hydrogen Storage in Salt Caverns (Solution Mining, Cushion Gas, Cycling) (EUAFAEAD), Hazardous Liquids & Specialty Chemical Terminals (Methanol, Solvents, Sulfur) (EUALAEAL)

Keywords

• Underground energy storage
• Salt cavern storage
• Natural gas storage
• Green hydrogen production
• Energy infrastructure services

Headquarters

HQ city

Salt Lake City

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Infrastructure, Operations, Personnel, Technology or R&D, Supply Chain

Revenue model

1. Energy Storage Services: Bulk storage services for natural gas, hydrogen, compressed air, and liquid energy products sold to regional energy producers and utilities. Revenue is generated through long-term storage contracts with major energy companies and pipeline operators.
2. Pipeline Transportation Services: Pipeline development and transportation services including the 62-mile header pipeline connecting to Kern River Gas Transmission and Questar Pipeline systems.

Go-to-market motion1 record

Distribution channels2 records

Marketing channels3 records

Core offering

Magnum Development develops and operates underground salt cavern storage infrastructure at its 10,000-acre Western Energy Hub in Millard County, Utah, providing bulk storage for natural gas, hydrogen, compressed air, and liquid energy products. The company also produces utility-scale green hydrogen through the ACES Delta joint venture with Mitsubishi Power Americas, using electrolysis powered by renewable energy. Services are delivered to utilities, energy producers, and government entities via long-term storage contracts and pipeline transportation.

Product overview

Magnum Development offers a portfolio of energy storage solutions centered on the Western Energy Hub—a multi-fuel storage facility in Delta, Utah. The core offering includes the Magnum Gas Storage Project for natural gas storage in salt caverns, and the ACES Delta joint venture with Mitsubishi Power Americas for utility-scale green hydrogen production and storage. Subsidiary brand Sawtooth Caverns provides NGL storage services. These products share underlying salt cavern infrastructure and are positioned to serve the Western Interconnection's demand for bulk gas, hydrogen, and renewable energy storage.

Differentiator

Problem solved

Functional benefit

Products and services

• Western Energy Hub

Quantifiable outcome

• 300+ GWh of hydrogen storage capacity
• +2 more outcomes

Named customers3 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Two partnerships are on record, tiered core and flagship.

• Mitsubishi Power AmericascoreStrategic or Co-development Partner · 30 May 2019In 2019, Magnum Development entered into a joint venture with Mitsubishi Power Americas to form ACES Delta. The joint venture produces utility-scale green hydrogen via electrolysis using renewable energy, storing it in the salt caverns at the Western Energy Hub. Mitsubishi Power provides the electrolyzer technology and operational expertise for the hydrogen production facility.
• Intermountain Power AgencyflagshipStrategic or Co-development PartnerACES Delta project supplies hydrogen to the Intermountain Power Agency's IPP Renewed power plant. The plant aims to achieve seasonal, dispatchable renewable energy storage using a hydrogen and natural gas blend with a goal of transitioning to 100% hydrogen by 2045.

Scale indicators7 records

Recent moves7 records

Expansion highlights5 records

Broad incumbents

• Williams Companies: Williams operates one of the largest U.S. natural gas midstream networks, including significant underground storage assets (salt caverns and depleted reservoirs). It overlaps Magnum on the storage product line but operates across a much broader midstream portfolio nationally.
• Plains All American Pipeline: Plains operates crude oil and NGL pipelines together with bulk storage terminals across North America. Comparable to Magnum on the NGL/refined products and storage-as-a-service model (Sawtooth Caverns) but in different commodities and geographies.
• Kinder Morgan: Kinder Morgan runs a nationwide network of natural gas pipelines and underground storage terminals serving utilities and LNG operators. Comparable to Magnum in product (natural gas storage) and customers (utilities) but at a far larger, more diversified scale.
• Energy Transfer: Energy Transfer is a major midstream operator with substantial natural gas, NGL and crude storage connected to its pipeline network. Similar commercial model (storage + pipeline + multi-product) to Magnum but with national geographic reach.
• Linde plc: Linde is the largest industrial gas company globally and a major producer, liquefier and distributor of green hydrogen. As a hydrogen developer offtaker, Linde would serve a similar role to ACES Delta's electrolyzer customer base and shares exposure to hydrogen storage economics with Magnum.

Others

• Chart Industries: Chart Industries manufactures cryogenic and hydrogen liquefaction/storage equipment widely used in the hydrogen and LNG value chain. It is not a storage operator but supplies critical hardware for hydrogen cavern top-side and liquefaction projects similar to Magnum's ACES Delta.

Direct peers

• Spire Inc. (Spire Storage): Spire Storage operates salt cavern natural gas storage in Missouri and Mississippi, directly comparable to Magnum Gas Storage on customer type (utilities/pipelines), product set (natural gas) and delivery model (long-term enterprise storage contracts).
• Caliche Development Partners: Caliche Development Partners operates one of the largest independent salt cavern storage networks on the U.S. Gulf Coast for natural gas, NGLs and crude. It is the closest direct peer to Magnum's solution-mined salt cavern model, addressing the same product set and customer types in a different geography.
• ACES Delta: ACES Delta is Magnum's own JV with Mitsubishi Power Americas that produces green hydrogen via electrolysis at the Western Energy Hub and stores it in Magnum's salt caverns. While owned by Magnum, it is the cleanest comparable unit for evaluating Magnum's hydrogen business in isolation.

Regional players

• Dominion Energy: Dominion Energy operates natural gas storage in salt caverns on the U.S. East Coast and serves as a utility-scale storage customer in its own LDCs. Comparable as a regulated utility owner/operator of underground gas storage assets, though focused on Atlantic coast rather than Western markets.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Magnum Development