ONEOK, MPLX form JV to construct LPG export plant, associated pipeline in Texas

ONEOK Inc., Tulsa, Okla., and MPLX LP, Houston, agreed to partner to expand the Gulf Coast NGL value chain through construction of a liquefied petroleum gas (LPG) export plant and associated pipeline in Texas. 

The JV, Texas City Logistics (TCX), envisions MPLX constructing and operating a 400,000 b/d plant in Texas City, Tex. 

The 400,000-b/d loading throughput is expected to be primarily low ethane propane (LEP) and normal butane (NC4), with ONEOK and MPLX each contractually reserving 200,000-b/d for their respective customers, ONEOK said in a release Feb. 4. 

Through an equally shared expected investment of $1.4 billion that leverages Marathon’s existing location and infrastructure, the plant is expected to be complete in early 2028, the companies said. 

The companies also plan to build a new 24-in. OD pipeline to extend from ONEOK's Mont Belvieu, Tex., storage infrastructure to the new plant.

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 pipeline investment are expected to be about $280 million and $70 million, respectively, for a total of $350 million.

“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,” said Pierce H. Norton II, ONEOK president and chief executive officer.