Tulsa, Okla.-based Oneok Inc. has collaborated with MPLX LP, the master limited partnership of Ohio-based Marathon Petroleum Corp. to build a Texas City export terminal and connected pipeline. Both projects should take approximately $1.75 billion.
The companies have created a joint venture called Texas City Logistics LLC, in which Oneok and MPLX each have an equal ownership interest. MPLX will be responsible for constructing and operating the 400,000-barrel-per-day liquid petroleum gas export terminal, which will utilize existing Marathon Petroleum infrastructure in Texas City. The terminal is expected to be completed by early 2028.
MBTC Pipeline LLC
The companies have also created MBTC Pipeline LLC, which will construct a 24-inch pipeline connecting Oneok’s Mont Belvieu storage facility to the new terminal.
“Partnering with MPLX on these strategically located projects enhances our natural gas liquids value chain and provides more options and value to our customers,” Oneok CEO Pierce H. Norton II said in a news release. “As we look ahead to continued growth and growing demand for energy infrastructure, including export capacity, these projects align well with our disciplined investment strategy.”
The two companies will have equal ownership of the $1.4 billion investment in the Texas City export terminal, with each partner investing approximately $700 million in the project. The terminal will have a specialty in exporting low ethane propane and normal butane products. The total capacity of the facility will be shared equally between Oneok and MPLX, reserving 200,000 barrels per day for their respective customers’ use.
The ownership in the MBTC Pipeline LLC would be 80 percent owned by Oneok and 20 percent by MPLX. Oneok would be responsible for constructing and operating the $350 million pipeline through an investment of $280 million, while $70 million will be funded by MPLX.
Independently, MPLX has been constructing a pair of fractionation facilities on 150,000 bbl/d each on-site next to Marathon Petroleum’s Galveston Bay Refinery, the major refinery in the Houston area, starting operations consecutively for 2028 and 2029.
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Oneok, MPLX Texas City Export Terminal & Pipeline Project Factsheet
Joint Venture between Oneok Inc. and MPLX LP
Project Overview
A strategic partnership to develop an LPG export terminal and connecting pipeline in Texas City, with a total investment of approximately $1.75 billion.
Key Project Components
Texas City Logistics LLC (Export Terminal)
Joint Ownership: 50/50 partnership between Oneok and MPLX
Operator: MPLX
Capacity: 400,000 barrels per day
Products: Low ethane propane and normal butane
Location: Texas City, utilizing existing Marathon Petroleum infrastructure
Completion Target: Early 2028
Total Investment: $1.4 billion ($700 million from each partner)
Capacity Allocation: 200,000 barrels per day reserved for each company’s customers
MBTC Pipeline LLC
Ownership Structure: Oneok (80%), MPLX (20%)
Operator: Oneok
Specifications: 24-inch pipeline
Route: Mont Belvieu storage facility to Texas City terminal
Total Investment: $350 million
Oneok contribution: $280 million
MPLX contribution: $70 million
Related Developments
MPLX is separately developing two fractionation facilities:
Location: Adjacent to Marathon Petroleum’s Galveston Bay Refinery
Capacity: 150,000 barrels per day each
Timeline:
First facility: 2028
Second facility: 2029
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