Max Midstream announced the acquisition of the Seahawk Pipeline and Terminal from Oaktree Capital at the Port of Calhoun to connect the Port directly to both Eagle Ford and Permian Basins to transport up to 20 million barrels a month to a revitalized terminal at the Port.
Exports will begin with completion of the first phase in late 2020, and the second phase project is expected to be completed by 2023 reported POST Online Media.
The Impact Data Source consultants have performed a comprehensive economic impact study and found the project will create 474 direct new jobs and another 598 construction related jobs over the next ten years.
These new jobs will span across the state, as there will be work building the pipeline all throughout parts of Texas.
During this process, Max Midstream will be investing up to $1 billion into the overall project.
Max Midstream and the Calhoun Port Authority have reached an agreement on a public/private partnership, in which Max Midstream will invest $360 million to finance the deepening and widening of the Port by 2023.
In the interim, Max Midstream has secured its own lightering zone to perform reverse lightering to export crude onto larger ships like Very Large Crude Carriers (VLCCs).
Max Midstream will initially load Panamax ships and reverse lighter to larger ships in its lightering zone.
Once the widening and deepening project is complete, Aframax and Suezmax ships will also be able to load at the Port, making it a viable option for any exporter seeking a port other than Houston or Corpus Christi.
Source: POST Online Media