Midstream players ONEOK and MPLX will build a new 400,000 barrel per day liquefied petroleum gas (LPG) export terminal in Texas City, on the Gulf Coast which will also feature a pipeline connecting to ONEOK’s storage facility in Mont Belvieu, Texas.
The $1.4bn export terminal will be known as Texas City Logistics and ONEOK and MPLX will each own a 50% interest in the joint venture. MPLX will build and operate the facility, with construction expected to be completed in early 2028.
“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 ONEOK’s president and CEO, Pierce Norton.
On the new terminal, analysts at Jefferies suggested: “This would provide some excess capacity for US exports where current constraints are impacting pricing across the LPG value chain (including VLGC spot rate potential).”
The US has averaged 1.9m barrels per day of LPG exports recently against terminal capacity of 2m barrels per day.
