ONEOK announces joint ventures for export terminal
Published by Oliver Kleinschmidt,
Assistant Editor
Hydrocarbon Engineering,
ONEOK, Inc. and MPLX LP have entered into definitive agreements to form joint ventures to construct a new large scale 400 000 bpd liquefied petroleum gas (LPG) export terminal in Texas City, Texas, and a new 24 in. pipeline from ONEOK's Mont Belvieu, Texas, storage facility to the new terminal.
Texas City Logistics LLC (TCX), 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 US$700 million each for a total of US$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 US$280 million and US$70 million, respectively, for a total of US$350 million.
ONEOK's share of capital investment for these projects is expected to be approximately US$1 billion.
"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 CEO. "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."
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/06022025/oneok-announces-joint-ventures-for-export-terminal/
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