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Max Midstream buys Seahawk Pipeline and Terminal

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Max Midstream, a Texas-based energy company, has bought the Seahawk Pipeline and Terminal at the Port of Calhoun, Texas, from Oaktree Capital.

It said it plans to build a new pipeline to the site, with a view to transforming Calhoun into an alternative to Houston and Corpus Christi for oil exporters.

The new pipeline will connect the Port of Calhoun directly with the Eagle Ford and Permian basins, and will transport up to 20 million bbl of oil a month.

Max Midstream also plans to upgrade the Seahawk export terminal facilities at the port and at the Edna pipeline interconnection terminal in Texas.

The company expects to begin exports when first phase of development is expected by the end of 2020. A second phase of development will be completed in 2023. Max Midstream will invest up to $1 billion. The development work is expected to create 1,000 jobs.

Todd Edwards, President of Max Midstream, said that the company will have built 1.5 million bbl of storage at Edna and 600,000 bbl of storage at Seahawk by the end of November 2020.

Following the second phase of development, Edna will have a total capacity of 9 million bbl, and Seahawk will have a total capacity of 6 million bbl. The port will have nine 16” loading arms and three 8” barge loading arms.

He 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.”

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