Oneok, MPLX announce joint ventures to build LPG export terminal

Oneok (OKE) and MPLX (MPLX) have entered into definitive agreements to form joint ventures to construct a new large-scale 400,000-barrel per day liquefied petroleum gas export terminal in Texas City, Texas, and a new 24-inch pipeline from Oneok’s Mont Belvieu, Texas, storage facility to the new terminal. Texas City Logistics, the export terminal joint venture, is owned 50% by Oneok and 50% by MPLX, with MPLX constructing and operating the facility, and is expected to be completed in early 2028. Oneok’s and MPLX’s share of the total investment in the export terminal is expected to be approximately $700M each for a total of $1.4B. The export terminal will leverage Marathon’s existing location and infrastructure providing construction timing and cost benefits. The 400,000-bpd loading throughput is expected to be primarily low ethane propane and normal butane, with Oneok and MPLX each contractually reserving 200,000-bpd for their respective customers. MBTC Pipeline, the pipeline joint venture, is owned 80% by Oneok and 20% by MPLX, with Oneok constructing and operating the pipeline. Oneok’s and MPLX’s share of the total investment in the pipeline are expected to be approximately $280M and $70M, respectively, for a total of $350M. Oneok’s share of capital investment for these projects is expected to be approximately $1B.