ONEOK, MPLX partner on Gulf Coast LPG export terminal

Midstream players ONEOK and MPLX announced this week that they had agreed to build a new 400,000 barrel per day (bpd) liquefied petroleum gas (LPG) export terminal in Texas City, on the Texas Gulf Coast. Under the plan, the partners will also build a new 24-inch (610-mm) pipeline connecting the new terminal with ONEOK’s storage facility in Mont Belvieu, Texas.

The export terminal will be known as Texas City Logistics and ONEOK and MPLX will each own a 50% interest in the joint venture. MPLX will build and operate the facility, with construction expected to be completed in early 2028. Both partners will invest around $700mn each in this portion of the project, for a combined investment of $1.4bn.

ONEOK will own an 80% stake in the pipeline joint venture, known as MBTC Pipeline, and will build and operate the pipeline, while MPLX will own the remaining 20%. ONEOK is expected to invest around $280mn into the pipeline portion of the project, while MPLX anticipated investing $70mn, for a combined $350mn.

The loading throughput at the Texas City Logistics facility is expected to consist primarily of low ethane propane (LEP) and normal butane (NC4). ONEOK and MPLX will each contractually reserve 200,000 bpd of capacity at the terminal for their respective customers.

"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," stated ONEOK’s president and CEO, Pierce Norton. "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 announcement comes days after ONEOK completed its $4.3bn acquisition of EnLink Midstream. That deal expanded ONEOK’s footprint in the Permian Basin and bolstered its natural gas liquids (NGLs) position. It was also one of the largest midstream mergers and acquisitions (M&A) to be announced in 2024.