(P&GJ) — In a major move to expand U.S. energy infrastructure, ONEOK Inc. and MPLX LP have announced a joint venture to construct a 400,000-barrel-per-day (bpd) liquefied petroleum gas (LPG) export terminal in Texas City, Texas. The project, which also includes a new 24-inch pipeline connecting the terminal to ONEOK’s Mont Belvieu storage facility, represents a significant investment in the growing demand for LPG export capacity.
Project Overview: Texas City Logistics LLC (TCX)
The new venture, named Texas City Logistics LLC (TCX), will be equally owned by ONEOK and MPLX, with both companies holding a 50% stake. MPLX will oversee the construction and operations of the terminal, which is scheduled for completion by early 2028.
Key Details:
- Capacity: 400,000 bpd of LPG
- Primary Products: Low-ethane propane (LEP) and normal butane (NC4)
- Ownership: 50% ONEOK, 50% MPLX
- Total Investment: $1.4 billion ($700 million from each company)
- Infrastructure: Utilizes Marathon’s existing facilities to reduce costs and accelerate construction timelines
Each company will reserve 200,000 bpd of terminal capacity for its customers, providing flexibility and reliability in meeting export demands.
MBTC Pipeline LLC: A Vital Connection
In addition to the terminal, a separate joint venture named MBTC Pipeline LLC will oversee the development of a 24-inch pipeline linking the Texas City terminal to ONEOK’s Mont Belvieu storage hub.
Pipeline Details:
- Ownership: 80% ONEOK, 20% MPLX
- Investment: $350 million total ($280 million from ONEOK, $70 million from MPLX)
- Responsibilities: ONEOK will handle both construction and operations
The pipeline will play a critical role in ensuring efficient transport of LPG products from storage to the export terminal, enhancing supply chain reliability.
Strategic Importance and Growth Opportunities
The combined projects reflect ONEOK’s and MPLX’s commitment to expanding their natural gas liquids (NGL) value chains and strengthening the U.S.’s position in the global energy market.
Pierce H. Norton II, President and CEO of ONEOK, highlighted the strategic significance:
“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’s total investment in the terminal and pipeline projects is estimated at $1 billion, showcasing the company’s focus on long-term growth in energy exports.
Why This Project Matters:
- Global Demand: The demand for LPG, especially in Asia and emerging markets, continues to grow, driven by its use in heating, cooking, and industrial applications.
- Energy Security: Expanding export infrastructure strengthens U.S. energy independence while supporting global energy security.
- Economic Impact: The project will generate construction jobs and create long-term operational roles, boosting the local economy in Texas City.
Project Timeline:
- Project Announcement: 2025
- Construction Start: Expected in late 2026
- Completion Date: Early 2028
FAQ
What is the Texas City Logistics LLC (TCX)?
Texas City Logistics LLC (TCX) is a joint venture between ONEOK Inc. and MPLX LP to build a 400,000 bpd LPG export terminal in Texas City, Texas.
What products will the new LPG terminal handle?
The terminal will primarily handle low-ethane propane (LEP) and normal butane (NC4), with each company reserving 200,000 bpd for their customers.
What is the MBTC Pipeline LLC?
MBTC Pipeline LLC is a joint venture between ONEOK (80%) and MPLX (20%) to construct a 24-inch pipeline connecting the Texas City terminal to ONEOK’s Mont Belvieu storage facility.
How much are ONEOK and MPLX investing in the project?
The total investment is $1.4 billion for the terminal ($700 million from each company) and $350 million for the pipeline ($280 million from ONEOK, $70 million from MPLX).
When will the Texas City LPG terminal be completed?
The LPG export terminal is expected to be completed by early 2028, with construction anticipated to start in late 2026.
