ONEOK and MPLX have signed agreements to form joint ventures (JVs) to build a large-scale liquefied petroleum gas (LPG) export terminal in Texas City, and a pipeline.

The JVs will be formed for building a new 400,000 barrel per day (bpd) LPG export terminal in Texas City, and a new 24in pipeline from ONEOK's Mont Belvieu, Texas, storage facility to the new terminal.

Texas City Logistics is the export terminal JV equally owned by ONEOK and MPLX.

MPLX will construct and operate the facility, which is expected to be completed in early 2028.

It is anticipated that ONEOK and MPLX will each contribute around $700m towards the total investment in the export terminal, totalling $1.4bn.

The terminal's 400,000bpd loading throughput will primarily consist of low-ethane propane (LEP) and normal butane (NC4).

ONEOK and MPLX will each reserve 200,000bpd for their respective customers.

MBTC Pipeline, the pipeline JV, will be owned by ONEOK and MPLX with 80% and 20% interests, respectively.

ONEOK will contribute around $280m and MPLX around $70m towards the total investment in the pipeline, amounting to a combined total of $350m.

The share of capital investment for these projects for ONEOK is expected to be roughly $1bn.

ONEOK president and CEO Pierce H Norton II said: "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.

"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."