ONEOK, Inc. and MPLX LP have finalized agreements to form joint ventures for the construction of a large-scale, 400,000-barrel-per-day (bpd) liquefied petroleum gas (LPG) export terminal in Texas City, Texas, and a new 24-inch pipeline connecting ONEOK’s Mont Belvieu storage facility to the terminal.
Texas City Logistics LLC (TCX), the export terminal joint venture, is owned equally by ONEOK and MPLX, with MPLX responsible for construction and operations. The facility is expected to be completed in early 2028, with each company investing approximately $700 million, bringing the total project cost to $1.4 billion. The terminal will leverage Marathon’s existing location and infrastructure to optimize construction timing and costs.
The terminal’s 400,000-bpd loading throughput will primarily consist of low ethane propane (LEP) and normal butane (NC4), with ONEOK and MPLX each contractually reserving 200,000 bpd for their respective customers.
MBTC Pipeline LLC, the pipeline joint venture, is owned 80% by ONEOK and 20% by MPLX, with ONEOK managing construction and operations. The total pipeline investment is estimated at $350 million, with ONEOK contributing approximately $280 million and MPLX investing around $70 million.
In total, ONEOK’s capital investment in these projects is expected to be approximately $1 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,” said Pierce H. Norton II, ONEOK president and chief executive officer. “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.”