ONEOK, Inc. and MPLX LP entered into definitive agreements on February 4, 2025, to form two joint ventures that will build a new liquefied petroleum gas export terminal and a connecting pipeline in Texas. The export terminal, to be located in Texas City, Texas, will carry a loading throughput capacity of 400,000 barrels per day and is expected to be completed in early 2028. A separate joint venture will construct a 24-inch pipeline linking ONEOK’s Mont Belvieu, Texas storage facility to the new terminal.
What it means
The terminal joint venture, Texas City Logistics LLC (TCX), is owned equally by ONEOK and MPLX, each contributing an expected $700 million toward the terminal’s $1.4 billion total cost. MPLX will construct and operate the terminal facility, which will leverage Marathon’s existing location and infrastructure at Texas City. Throughput is expected to consist primarily of low ethane propane and normal butane, with ONEOK and MPLX each contractually reserving 200,000 barrels per day for their respective customers. Pierce H. Norton II, ONEOK’s president and chief executive officer, said the projects “expand and extend our NGL value chain providing additional optionality and value to our customers” and that they “complement our disciplined capital allocation strategy.”
The pipeline joint venture, MBTC Pipeline LLC, is owned 80% by ONEOK and 20% by MPLX, with total expected investment of $350 million. ONEOK will construct and operate the pipeline. ONEOK’s combined expected capital share across both projects is $1.0 billion.
Key facts
- Terminal location: Texas City, Texas
- Terminal loading throughput capacity: 400,000 bpd, primarily low ethane propane and normal butane
- Expected terminal completion: early 2028
- Total expected terminal investment: $1.4 billion ($700 million each from ONEOK and MPLX)
- TCX ownership: ONEOK 50%, MPLX 50%
- Pipeline: 24-inch diameter, Mont Belvieu to Texas City; total expected investment $350 million
- MBTC Pipeline LLC ownership: ONEOK 80%, MPLX 20%
- ONEOK’s total expected capital share across both projects: $1.0 billion
- Each party contractually reserved 200,000 bpd of terminal capacity for its customers
Source: ONEOK, Inc. and MPLX LP news release