CORPUS CHRISTI, Tx — The need for more water in South Texas is urgent and growing. Cities are rushing to secure new supplies, including desalination. But there's a new force in the region's water landscape — and it's not a public utility.
Seven Seas Water Group, a private company, is positioning itself to control significant water resources across the Coastal Bend through decades-long contracts that promise fast delivery and no upfront costs. But the trade-off could be long-term private control over a vital public resource.
Seven Seas Water Group has built and operated seawater desalination plants across the Caribbean and Middle East for years. Their parent company, EQT Infrastructure, buys utilities — from ports to broadband — and runs them for profit.
The company's approach is straightforward: they finance, build, and operate water treatment facilities, then sell the treated water to public utilities under long-term contracts. It's a model known as "water as a service."
"We take the entire risk on ourselves," said Henry Charrabé, Seven Seas CEO, in an interview with KRIS 6 News. "We invest, we engineer, procure, construct, maintain, operate the plant for many years — 10, 20, 30 years or more — and the customer ultimately only pays for the water that they subscribe to."
Current Operations in Alice
In the Coastal Bend, Seven Seas runs Texas' first public-private groundwater desalination plant in Alice. They financed, built, and now operate it under a 15-year agreement. The city buys nearly 3 million gallons a day at a guaranteed rate of about $2.20 per thousand gallons, with ownership eventually transferring to Alice.
According to the Texas Water Development Board, residents could see a maximum rate increase of about $25 per month by 2030 to cover the cost. This model gives Alice drought-proof water now, with no upfront costs — but ratepayers are committed for the next 15 years.
The South Texas Water Authority Deal
A much larger agreement involves the South Texas Water Authority (STWA). In August 2024, STWA signed a contract with Seven Seas to build a new groundwater desalination plant near Robstown and Driscoll.
The project would start at 3 million gallons per day but could expand dramatically — potentially to 28-30 million gallons daily — if the City of Corpus Christi decides to purchase water through STWA.
Public access to contract details has been limited. Key pricing information remains redacted, and city officials say they've had to sign non-disclosure agreements to review the full contract.
"Why require an NDA for city officials to review a public water contract?" we asked Charrabé during our interview.
"I think ultimately we want to make sure that again, it's STWA, which is our customer, if Corpus, the City of Corpus Christi wants to review a contract, then we want to make sure that obviously that's not gonna be used to our disadvantage," he responded, noting that the company seeks to protect commercial opportunities.
When pressed about providing unredacted contract details to the public before a public vote, Charrabé said the company is waiting for guidance from the Texas Attorney General on what information must be made public, adding the company is "always protected, but there are no secrets."
As of August, several key pieces of information remain unavailable related to a potential expansion: water quality, environmental impact, infrastructure assessments, and final pricing.
The Bigger Picture: Privatization Concerns
This proposal represents privatization of water infrastructure. Supporters say it brings private money and expertise to cash-strapped utilities. Critics warn it locks cities into rigid, decades-long contracts with limited public control.
California learned this lesson during drought-driven desalination deals in the 2000s. Towns like Carlsbad signed private desalination contracts, but when water use patterns changed and costs rose, they were stuck paying millions for water they couldn't fully utilize.
While Seven Seas wasn't behind those California plants, the long-term contracts and private ownership model are strikingly similar to what's happening in Texas.
The fundamental question is who bears the risk. Seven Seas said its model protects taxpayers because the company assumes all upfront investment risk.
"There is no upfront cost. There is no engineering fee that you have to pay," Charrabé said. "There is nothing, nothing, at all from the customer that has to be paid unless and until we deliver fresh drinking water."
However, city officials worry about long-term commitment to potentially unviable projects. If a private water project fails to deliver as promised, it could derail other water supply options.
"We know if we buy into a water project that isn't really viable, we kill off a lot of other projects at the same time once we commit to a non-viable project," said Miles Risley, Corpus Christi city attorney, during a recorded meeting between the city, STWA, and Seven Seas.
The ambitious timeline originally proposed — with city council decisions by August 2024 — has been pushed back as critical information remains unavailable.
Seven Seas and STWA officials now say they expect key data on water quality, environmental impact, and costs by late August or early September 2024. A comprehensive pipeline assessment will take longer.
What This Means for Ratepayers
For consumers, the key questions remain:
What will this water actually cost?
How will pricing change over 30+ years?
What happens if the private company can't deliver as promised?
How much public oversight will remain over this essential service?
The decisions made in the coming months could shape water supply — and water rates — for generations to come.
READ MORE: Corpus Christi's Water Gamble: Behind the promises, a deal built on unknowns
READ MORE: Corpus Christi leaders question groundwater deal as critical studies remain incomplete
READ MORE: Residents voice opposition to proposed groundwater desalination facility in South Texas
