ONEOK and MPLX Form Joint Ventures to Build LPG Export Terminal and Pipeline
In a significant move to expand and extend the integrated NGL (Natural Gas Liquids) value chain, ONEOK, Inc. (OKE) and MPLX LP (MPLX) have announced definitive agreements to establish joint ventures for constructing a new large-scale liquefied petroleum gas (LPG) export terminal and a new pipeline in Texas. This strategic partnership aims to strengthen the companies’ positions in the NGL market and enhance their ability to serve customers and markets both domestically and internationally.
New LPG Export Terminal in Texas City
The new LPG export terminal, to be located in Texas City, Texas, will have a capacity of 400,000 barrels per day (bpd). This state-of-the-art facility will enable ONEOK and MPLX to capitalize on the growing demand for LPG exports, particularly from countries like Mexico, South America, and Asia. The terminal will provide access to multiple markets, allowing the companies to optimize their logistics and supply chain network.
New 24-inch Pipeline from Mont Belvieu to Texas City
The joint ventures also include the construction of a new 24-inch pipeline from ONEOK’s Mont Belvieu, Texas, storage facility to the new LPG export terminal. This pipeline, with a capacity of approximately 1.3 million gallons per day, will provide a reliable and efficient transportation solution for moving NGLs from the Mont Belvieu storage facility to the Texas City terminal. The pipeline is expected to further strengthen the companies’ infrastructure and improve their ability to meet the growing demand for NGLs in export markets.
Impact on Consumers
For consumers, this strategic partnership between ONEOK and MPLX could lead to increased availability and affordability of LPG. The new terminal and pipeline will facilitate the export of excess NGL supplies, thereby helping to maintain a stable domestic supply and potentially reducing prices for consumers. Additionally, the increased efficiency and capacity of the supply chain could lead to more competitive markets and better customer service.
Impact on the World
On a global scale, the new LPG export terminal and pipeline will contribute to the growing trend of US LPG exports. The United States is already the world’s leading exporter of LPG, and this new terminal and pipeline will further strengthen the country’s position in the global market. The increased availability of LPG from the US could lead to more stable and affordable prices for countries that rely on LPG imports, particularly those in Asia and South America.
Conclusion
The strategic partnership between ONEOK and MPLX to construct a new LPG export terminal and pipeline represents a significant step forward in the integrated NGL value chain. This investment in infrastructure will not only benefit the companies involved but also consumers and the global market. The increased capacity and reliability of the supply chain will contribute to more stable and affordable prices for LPG, while the new terminal will enhance the US’s position as a leading exporter of LPG. As the world’s energy landscape continues to evolve, partnerships like this one will be essential in meeting the growing demand for energy and ensuring a reliable and efficient supply chain.
- ONEOK and MPLX form joint ventures to construct a new LPG export terminal and pipeline
- Terminal to be located in Texas City, Texas, with a capacity of 400,000 bpd
- New 24-inch pipeline to transport NGLs from Mont Belvieu to Texas City
- Increased availability and affordability of LPG for consumers
- Contributes to the growing trend of US LPG exports
