December 11, 2025 [SP Global]- ONEOK is receiving “lot of interest” for contracting capacity on its planned 400,000-b/d Texas City LPG export terminal, even as midstream players are working toward providing incremental export capacity from the US Gulf Coast, a senior company official said Nov. 12.

“We are very pleased with the way contracting is going and we have lot of interest from people wanting to sign up for capacity,” Chief Commercial Officer Sheridan Swords said on a webcast of a fireside chat at the B of A Securities Global Energy Conference 2025. “The big competitive advantage is the location and the customers understand that and they value the closeness to open water where you take a lot of risk out of the fog.”

In early 2025, as part of expanding its integrated NGL value chain in the US, ONEOK said it had entered into agreements to build a new 400,000 b/d LPG export terminal in Texas City, Texas and a new 24-inch pipeline from the company’s Mont Belvieu, Texas, storage facility to the new terminal.

Texas City is located in Galveston County on the US Gulf Coast, allowing for loading of marine tankers.

ONEOK is 50% partner, along with MPLX holding the remaining 50% interest, in Texas Logistics that is building and operating the planned terminal that is targeted for completion early 2028.

The loading throughput is expected to be primarily low ethane propane (LEP) and normal butane (NC4), with ONEOK and MPLX each contractually reserving 200,000-b/d for their respective customers, ONEOK said early this year.

Last quarter, ONEOK handled a total of 1.574 million b/d of NGL in the US, with volumes from the Permian and the Gulf Coast standing at 567,000 b/d, the company said in its earnings release late October.

More time sought for Sun Belt Connector

Separately, the company has extended the binding open season to Dec. 5 to gauge customer interest in a proposed 440-mile refined products pipeline from Texas to Arizona, he said.

“We have a lot of interest in it, but we had a couple of people who wanted to look at this other option as they go forward and we have given our customers some more time to evaluate this,” Swords said.

The project would connect refined products with Houston and southern Oklahoma origins to El Paso, Texas, and Phoenix-area destinations through new pipeline construction by Sun Belt Connector, according to the company’s Sept. 8 announcement.

The initiative targets transportation of gasoline, diesel and jet fuel with potential service beginning in mid-to-late 2029, subject to final investment decisions and regulatory approvals, it said then.

The Sept. 8 announcement of an open season for the Sunbelt Connector, a 200,000 b/d refined products pipeline, will give the company access to the Southwest refined products market, which is in danger of being underserved with the closure of California refining capacity, which is expected to shift the region’s refined products flows.

The proposed system would originate from Magellan’s East Houston Terminal in Harris County, Texas, and Southern Oklahoma facilities in Garvin County, delivering to Sun Belt Connector’s Phoenix Terminal in Maricopa County, Arizona, and Phoenix Sky Harbor International Airport or connecting pre-airfield terminals. The company is also offering capacity on shorter component movements between Houston and El Paso, and from El Paso to Phoenix destinations.