Port of Corpus Christi chooses Nueces River Authority for desalination project

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15-07-2025

The Port of Corpus Christi intends to hand off plans for a potential desalination plant on Harbor Island to the Nueces River Authority.
After 10 months of deliberation, the Port of Corpus Christi Commission approved a resolution on July 15 authorizing port leadership to finalize a lease and use agreement for 31 acres of land on Harbor Island with the river authority.
Included in the lease agreement is a provision that would make water from the plant cheaper for the city of Corpus Christi compared to other municipalities and water providers.
The Port of Corpus Christi has been pursuing plans for a desalination facility on Harbor Island for years, securing the initial permits with the intention that another entity would eventually construct and operate the plant.
In the fall, the Nueces River Authority submitted an unsolicited proposal asking to be assigned the permits the port has pursued for Harbor Island.
The Nueces River Authority, which is tasked by Texas law with preserving, protecting and developing surface water resources in the Nueces River region, intends to partner with a private company to design and build the facility.
Harbor Island is located between the cities of Aransas Pass and Port Aransas. Historically, the property housed Exxon and Fina bulk fluid export facilities.
The port applied in February for a permit from the U.S. Army Corps of Engineers to construct a seawater desalination facility with a capacity to generate 100 million gallons of treated water per day. It is also pursuing an offshore discharge permit from the Texas Commission on Environmental Quality.
The Port of Corpus Christi will continue to pursue permits for the facility, but responsibility for the project now rests with the Nueces River Authority.
According to the resolution, the Nueces River Authority or its private partner will construct, own and operate the facility, as well as delivery lines.
The Caller-Times has requested the lease agreement, which was not immediately available July 15.
The resolution states that the port 'wishes to provide incentives' for the river authority to contract with the city of Corpus Christi to provide water.
The port will waive part of the rent payment owed by the river authority for water provided to the city of Corpus Christi. This discount would amount to about 10 cents per thousand gallons of water.
The city of Corpus Christi is currently engaged in other water projects, including desalination. There is not currently an agreement between the Nueces River Authority and the city of Corpus Christi regarding water from Harbor Island.
'We hope that (incentive) will encourage both parties to work together in the future,' port CEO Kent Britton said.
The lease agreement will go into effect in August.
The river authority will pay more than $32,000 monthly in the first year, with the amount increasing to more than $58,000 monthly in the second year, Britton said.
During the first two years, the agreement functions as an option agreement, allowing the Nueces River Authority to walk away if it is unable to continue the project. Payments will increase after the first two years as the project heads through the pre-construction, construction and operation phases, Britton said.
"We priced this exactly like we would any other commercial land lease," Britton told commissioners during the July 15 meeting. "We valued the property at the highest level we value property at, just like we would in a commercial deal, because Harbor Island is a very valuable piece of property and we recognize that."
The agreement includes a series of milestones that the river authority must meet as the project progresses.
Last week, the river authority held a meeting with potential industrial partners.
In the months before formalizing an agreement with the port, the river authority sought commitments from South Texas municipal water providers. These paid reservation contracts put municipalities first in line for water from the potential facility.
Nueces River Authority Executive Director John Byrum said that the river authority has firm commitments accounting for 38% of the potential capacity of 100 million gallons per day.
If the river authority negotiates reservation agreements exceeding that amount, some municipalities would have to wait until the facility is expanded, Byrum said.
Since the Nueces River Authority entered the picture for Harbor Island, it has expressed interest in a much larger facility, potentially with a capacity of 450 million gallons of water per day.
Building a pipeline system to convey water from the facility across South Texas could cost in the range of $3 billion, Byrum said. The river authority would fund and construct the conveyance system.
The total project could cost $4.5 billion to $5.5 billion, Byrum said.
The private partner chosen to build the plant would finance it initially, Byrum said. At some point, potentially 30 years down the line, the river authority would take on or pay off debt from the desalination facility and assume operations.
The river authority does not currently have experience with seawater desalination. The private partner chosen for the project would provide that expertise, Byrum said.
Port Commissioner Diane Gonzalez said that the port has made "significant strides," including ensuring discharge from the facility will be offshore into the Gulf.
The port previously secured an inshore discharge permit that would have directed wastewater from the plant into the Inner Harbor Ship Channel, sparking opposition and concerns from residents and scientists about potential devastating consequences for marine life. This spring, the port shifted focus entirely to offshore discharge.
"In moving this item forward today, we are also reaffirming that commitment that discharge at Harbor Island will be taken offshore," Gonzalez said.
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This article originally appeared on Corpus Christi Caller Times: Nueces River Authority secures lease for Harbor Island desalination