LPG Export Terminal in Texas
ONEOK Inc. and MPLX LP are making a significant investment of $1.4 billion to construct a new liquefied petroleum gas (LPG) export terminal in Texas City. The joint venture, Texas City Logistics LLC, aims to create a facility with a capacity of 400,000 barrels per day, set to commence operations by early 2028. The project includes a $350 million pipeline connection, enhancing Texas’s position as a major player in the LPG export market. This development reflects the growing demand for LPG both domestically and internationally.
Texas City is buzzing with excitement as two major players in the energy sector, ONEOK Inc. and MPLX LP, are joining forces for a hefty investment of $1.4 billion to build a state-of-the-art liquefied petroleum gas (LPG) export terminal and a connecting pipeline. This partnership signals an important development for the Lone Star State, as it gears up to become a powerhouse in the LPG export business.
The joint venture responsible for the new export terminal is aptly named Texas City Logistics LLC and it will be equally owned by both ONEOK and MPLX. The facility is designed to have a capacity of 400,000 barrels per day (bpd) and is anticipated to be up and running by early 2028. This is quite an ambitious project, and understandably so, given the booming demand for LPG both domestically and internationally.
MPLX will take charge of constructing and operating the terminal, which will primarily handle low ethane propane and normal butane. Each company has set aside 200,000 bpd for their own customer bases, ensuring a steady flow of products from this bustling new terminal. The expected completion by 2028 will mark the start of a new era for LPG exports in Texas.
But wait, there’s more! Alongside the export terminal, a new pipeline is also in the works. A separate joint venture, named MBTC Pipeline LLC, will be building a 24-inch pipeline that connects ONEOK’s existing storage facility in Mont Belvieu to the terminal. This pipeline will be primarily owned by ONEOK, holding an 80% stake, while MPLX will control the remaining 20%.
The total investment for the pipeline project is pegged at $350 million, with ONEOK contributing about $280 million and MPLX investing $70 million. This makes ONEOK’s entire investment across both projects hover around the significant figure of $1 billion. Sounds like quite the venture!
One of the smart aspects of this development is that it will utilize the existing infrastructure owned by Marathon Petroleum in Texas City. This strategic choice will help to save on both costs and time—something every business loves. Speaking of expansion, MPLX is not stopping there. They are also planning to construct two 150,000 bpd fractionation facilities near Marathon Petroleum’s Galveston Bay Refinery, set to begin operations in 2028 and 2029.
Furthermore, they are planning to expand the Belvieu Alternative Natural Gas Liquids pipeline from 250,000 bpd to 300,000 bpd. This is designed to ease the transportation of liquids to the new fractionation facilities. Talk about strategic planning!
While all this is happening, ONEOK is aggressively pushing its growth in Texas. The company has recently made several significant acquisitions, including a planned $18.8 billion purchase of Magellan Midstream Partners. Moreover, they secured Easton Energy’s Gulf Coast Liquids Pipeline for a hefty $280 million and also took a sizeable interest in EnLink Midstream for about $10.2 billion.
Even with all this growth, ONEOK plans to keep its headquarters in Tulsa, while making a mark in Dallas and Houston with a substantial employee presence. It’s clear that Texas is fast becoming a central hub for energy production, and with these new projects on the horizon, the future looks bright for the state’s economy.
So there you have it, folks! Texas is ready to take its energy game to the next level. With investments of this magnitude, we’re all eagerly waiting for what’s to come!
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