ONEOK’s signed a deal with another firm to build a new nearly $1.4 billion LPG export terminal in Texas as the company apparently is trying to take advantage of a reversal of the Biden administration’s freeze on LPG exports.
The Tulsa-based company said it has entered into agreements with MPLX LP to form joint ventures to builda new large-scale 400,000-barrel a day liquefied petroleum gas export terminal in Texas City, Texas. Plans also callfor construction of a new 24-inch pipeline from ONEOK’s Mont Belvieu, Texas storage facility to the new terminal. ONEOK’s share of capital investment for these projects is expected to be approximately $1.0 billion. ONEOK’s and MPLX’s share of the total investment in the export terminal is expected to be approximately $700 million each for a total of $1.4 billion.
Texas City Logistics LLC, the export terminal joint venture, is owned 50% by ONEOK and 50% by MPLX, with MPLX constructing and operating the facility, and is expected to be completed in early 2028. ONEOK’s and MPLX’s share of the total investment in the export terminal is expected to be approximately $700 million each for a total of $1.4 billion. The export terminal will leverage Marathon’s existing location and infrastructure providing construction timing and cost benefits.
The 400,000-bpd loading throughput is expected to be primarily low ethane propane (LEP) and normal butane (NC4), with ONEOK and MPLX each contractually reserving 200,000-bpd for their respective customers.
MBTC Pipeline LLC, the pipeline joint venture, is owned 80% by ONEOK and 20% by MPLX, with ONEOK constructing and operating the pipeline. ONEOK’s and MPLX’s share of the total investment in the pipeline are expected to be approximately $280 million and $70 million, respectively, for a total of $350 million.
“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,” said Pierce H. Norton II, ONEOK president and chief executive officer. “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.”