ONEOK, MPLX to Build $1.4 Billion LPG Export Terminal, Pipeline in Texas
(P&GJ) — ONEOK Inc. and MPLX LP are partnering to build a 400,000-barrel-per-day (bpd) liquefied petroleum gas (LPG) export terminal in Texas City, Texas, along with a 24-inch pipeline connecting the terminal to ONEOK's Mont Belvieu storage facility.
The joint venture, Texas City Logistics LLC (TCX), is split evenly between ONEOK and MPLX, with MPLX handling construction and operations. The project, expected to be completed by early 2028, represents a total investment of $1.4 billion, with each company contributing $700 million. The terminal will utilize Marathon's existing infrastructure to optimize costs and construction timing.
The facility’s loading capacity will primarily handle low-ethane propane (LEP) and normal butane (NC4), with each company reserving 200,000 bpd for its customers.
A separate joint venture, MBTC Pipeline LLC, will develop the new pipeline. ONEOK owns an 80% stake and MPLX 20%, with ONEOK leading construction and operations. The pipeline investment totals $350 million, with ONEOK contributing $280 million and MPLX $70 million.
ONEOK’s overall investment in the projects is estimated at $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 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."
The Author
Mary Holcomb is the Digital Editor & Operations Manager at Gulf Energy Information, overseeing the Pipeline & Gas Journal, World Oil, and Underground Infrastructure brands. With over 5 years of experience, she drives digital content strategy and operations for these industry-leading publications.
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