ONEOK, MPLX plan new LPG export terminal, pipeline on Gulf Coast

ONEOK Inc. and MPLX LP agreed to form joint ventures to construct a 400,000-barrel per day (bpd) liquefied petroleum gas (LPG) export terminal in Texas City, Texas, and a 24-in. pipeline from ONEOK’s Mont Belvieu, Texas, storage facility to the new terminal.

Texas City Logistics LLC, the export terminal joint venture, is owned 50 percent by ONEOK and 50 percent by MPLX, with MPLX constructing and operating the facility, and is expected to be completed in early 2028. The companies’ share of the total investment in the export terminal is expected to be approximately $700 million each for a total of $1.4 billion. The export terminal will leverage Marathon’s existing location and infrastructure, providing construction timing and cost benefits, according to the companies.

The 400,000-bpd loading throughput is expected to be primarily low ethane propane and normal butane, with ONEOK and MPLX each contractually reserving 200,000-bpd for their respective customers.

MBTC Pipeline LLC, the pipeline joint venture, is owned 80 percent by ONEOK and 20 percent by MPLX, with ONEOK constructing and operating the pipeline. The companies’ share of the total investment in the pipeline is expected to be approximately $280 million and $70 million, respectively, for a total of $350 million.

ONEOK’s share of capital investment for these projects is expected to be approximately $1.0 billion.

“We are excited to collaborate with MPLX on these strategically located projects, which expand and extend our NGL value chain, providing additional optionality and value to our customers,” says Pierce H. Norton II, ONEOK president and CEO. “Given our high expectations for future growth and demand for more energy infrastructure, including export capacity, these projects with MPLX complement our disciplined capital allocation strategy.”

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