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Calhoun Port Expanding, Connecting to Gray Oak Pipeline

1/8/2021

Max Midstream and the Calhoun Port Authority announced that with the recent passage of the Water Resources and Development Act by Congress that expansion of the Calhoun Port will begin this year. The national legislation included language pursued by both Max and the CPA that authorizes the deepening and widening of the port.

Calhoun Port

Max also announced that it reached an agreement with Phillips 66 to connect the Gray Oak pipeline to the Calhoun Port. This will allow Permian and Eagle Ford basin crudes to export via the Port as well.

“This is another great step forward for Texas energy and for markets around the world seeking Texas crude,” said Max Midstream CEO Todd Edwards. “Now that Congress has approved the deepening and widening of the Calhoun Port, Max Midstream will expedite the process by financing the expansion directly. “

The deepening and widening will be complete by early 2023 and 20 million barrels per month will be shipped out of the port, Edwards said.

The preliminary engineering and design work is underway. Once the widening and deepening project is complete, Edwards added, 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.

Earlier in 2020, Max Midstream and the Calhoun Port Authority 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. Max Midstream will initially load Panamax ships and will 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 non-congested port connected to both the Eagle Ford and the Permian other than Houston or Corpus Christi.