The ONEOK and MPLX Texas City export terminal and pipeline project, a major liquefied petroleum gas (LPG) infrastructure initiative on the U.S. Gulf Coast, is advancing toward construction and commercial engagement, reflecting strong market interest in expanding export capacity from North America. The development, led through a 50/50 joint venture between ONEOK, Inc. and MPLX LP, will include a new 400,000 barrels-per-day LPG export terminal and an associated 24-inch natural gas liquids pipeline from ONEOK’s Mont Belvieu storage facility to the Texas City site. The combined investment is approximately US $1.75 billion and is targeted for completion in early 2028.

Market demand for export capacity at the Texas City facility appears robust, with ONEOK reporting “a lot of interest” from midstream players and potential capacity holders who see the terminal’s prime Gulf Coast location and marine access as significant advantages for shipping low ethane propane (LEP) and normal butane (NC4) products globally. In addition to the terminal, the project includes the MBTC Pipeline LLC joint venture, in which ONEOK holds 80% and MPLX 20% that will construct and operate the dedicated pipeline linking Mont Belvieu to the export terminal. This integrated infrastructure aims to strengthen the NGL value chain by providing efficient outbound logistics from the heart of U.S. production basins. This push for Gulf Coast export buildout is also being matched in crude oil infrastructure, including Sentinel Midstream’s newly launched Texas GulfLink deepwater VLCC port project, a US$2.1 billion development designed to expand U.S. crude export capability through direct supertanker loading capacity offshore Texas.

Project Overview

• Project Name: Texas City LPG Export Terminal and MBTC Pipeline Project
• Location: Texas City, Galveston County, Texas, USA
• Project Type: LPG export terminal and connecting NGL pipeline
• Total Investment: Approximately US $1.75 billion
• Export Terminal Capacity: 400,000 barrels per day (LPG)
• Products Exported: Low ethane propane (LEP), normal butane (NC4)
• Pipeline Specification: 24-inch natural gas liquids pipeline
• Joint Venture (Export Terminal): Texas City Logistics LLC — 50% ONEOK / 50% MPLX; terminal operator MPLX
• Joint Venture (Pipeline): MBTC Pipeline LLC — 80% ONEOK / 20% MPLX; ONEOK operates
• Target Completion: Early 2028 (for both terminal and pipeline)

Project Team

• ONEOK, Inc. – Joint venture partner and major investor (50% in terminal, 80% in pipeline); pipeline operator and construction lead
• MPLX LP – Joint venture partner and major investor (50% in terminal, 20% in pipeline); terminal construction and operations lead
• Texas City Logistics LLC – Export terminal joint venture (ONEOK/MPLX ownership) managing terminal delivery
• MBTC Pipeline LLC – Pipeline joint venture (ONEOK/MPLX ownership) responsible for pipeline build and operations
• Marathon Petroleum Infrastructure (Marathon) – Existing infrastructure partner; site leverage through existing Marathon Petroleum facilities
• Latham & Watkins LLP – Legal advisor to ONEOK on joint venture formation and transaction structuring

Reported 4th February 2025: ONEOK and MPLX are collaborating on a large-scale energy infrastructure project in Texas City, aimed at strengthening the region’s role as a hub for U.S. liquefied petroleum gas (LPG) exports. The development combines a major new terminal with a dedicated pipeline connection, representing a combined investment of about $1.75 billion.

The companies 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.

In addition to the Texas City development, ONEOK and MPLX are collaborating on other large-scale ventures. Most recently, the two companies, alongside WhiteWater and Enbridge, reached a final investment decision on August 25, 2025 on the Eiger Express Pipeline, a 450-mile system designed to carry natural gas from the Permian Basin to the Gulf Coast.

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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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