ONEOK and MPLX LP have entered into an agreement to develop a large-scale LPG export terminal in Texas City, Texas. With a capacity of 400,000 barrels per day ( bpd ), this infrastructure will connect to the Mont Belvieu storage facility through a new 24-inch pipeline.
The investment in the LPG export terminal
The two companies will invest approximately $1.4 billion in the terminal, splitting the costs equally. ONEOK and MPLX will each reserve 200,000 bpd for their customers. The terminal will be operated under the joint venture Texas City Logistics LLC ( TCX ), with MPLX in charge of construction and management of the facility.
[post_relacionado]In addition, a new pipeline called MBTC Pipeline LLC will be developed, with ONEOK owning 80% of the shares and MPLX owning 20%. The total investment in the pipeline amounts to US$350 million, of which ONEOK will contribute US$280 million and MPLX US $70 million.
The terminal will take advantage of Marathon Petroleum Corporation ‘s infrastructure, optimizing costs and construction times. In addition, the work is expected to be completed in early 2028 and will contribute to the expansion of LPG export capacity, covering low propane ethane ( LEP ) and normal butane ( NC4 ).
Given our high expectations for future growth and demand for additional energy infrastructure, including export capacity, these projects with MPLX complement our disciplined capital allocation strategy.
Pierce H. Norton II, CEO of ONEOK.
This strategic partnership strengthens ONEOK and MPLX’s role in the energy infrastructure sector in the United States, providing efficient solutions for the transportation and export of LPG. With the rise of global NGL trade , this terminal is emerging as a key point in the distribution of hydrocarbons.
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Source and photos: ONEOK