February 05, 2025 [Storage Terminals Magazine]- ONEOK, Inc. and MPLX LP have entered into definitive agreements to form joint ventures for the construction of a large-scale liquefied petroleum gas export terminal in Texas City, Texas, and a 24-inch pipeline connecting ONEOK’s Mont Belvieu, Texas, storage facility to the new terminal.

Texas City Logistics LLC, the export terminal joint venture, will be equally owned by ONEOK and MPLX, with MPLX responsible for construction and operations. The facility is expected to be completed in early 2028, with both companies investing approximately 700 million dollars each, bringing the total project cost to 1.4 billion dollars. The terminal will leverage existing infrastructure at Marathon’s location, providing efficiencies in construction timing and costs.

Designed with a loading throughput capacity of 400,000 barrels per day, the terminal will primarily handle low ethane propane and normal butane. ONEOK and MPLX will each have contractual rights to 200,000 bpd for their respective customers.

MBTC Pipeline LLC, the pipeline joint venture, will be majority-owned by ONEOK (80 percent) with MPLX holding a 20 percent stake. ONEOK will oversee the pipeline’s construction and operations. The total investment in the pipeline is estimated at 350 million dollars, with ONEOK contributing approximately 280 million dollars and MPLX investing 70 million dollars.

ONEOK’s total capital investment for these projects is expected to be approximately 1 billion dollars.

Pierce H. Norton II, president and chief executive officer of ONEOK, highlighted the strategic importance of the collaboration, stating, “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. 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.”

ONEOK is a leading midstream operator that provides gathering, processing, fractionation, transportation, and storage services. With an extensive 60,000-mile pipeline network, the company plays a key role in transporting natural gas, natural gas liquids, refined products, and crude oil to meet domestic and international energy demand. As one of North America’s largest diversified energy infrastructure companies, ONEOK is committed to delivering safe, reliable, and responsible energy solutions.