Houston-based Max Midstream said Sept. 23 it acquired Seahawk pipeline and terminal from Oaktree Capital at Port of Calhoun with plans for a pipeline that will connect the port to producers in Permian Basin and Eagle Ford. Max Midstream said the new pipeline will “transport up to 20 million barrels a month to a revitalized terminal.” Exports will begin with completion of Phase I in late 2020, and Phase II is expected to be completed by 2023.
The company’s announcement said the project is “a game changer” by opening a third port served by Matagorda Ship Channel in addition to ports in Houston and Corpus Christi, “which are typically at or near full capacity with congestion.” Max Midstream has agreements with pipeline interconnects to Kinder Morgan in Edna, to Gray Oak and to Victoria Express. Max Midstream said it will invest $1 billion in the overall project, including $360 million to deepen and widen Port of Calhoun.
Todd Edwards, president, said, “By developing the Seahawk terminal at the port, we will be able to offer a deep-water terminal with little congestion and the ability for producers to get their product to the port at a very reasonable price.”