Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary
Research > ETFs > ETF / ETP Commentary > 

ONEOK and MPLX Add NGL Export Capacity With Joint Venture, Pipeline

BY | ETF Database
02/05/2025 | 479 VIEWS
Midstream companies are focused on natural gas liquid (NGL) growth opportunities.ONEOK (OKE) and MPLX LP (MPLX) are the latest names to tap growth opportunities around NGLs. The midstream companies will team up to construct a new large-scale liquefied petroleum gas (LPG) export terminal in Texas City, Texas. Additionally, ONEOK and MPLX will build a new pipeline from ONEOK’s Mont Belvieu, Texas, storage facility to the new terminal. The capacity of the new export terminal will be 400,000 barrels per day (bpd). The loading throughput is expected to be primarily low ethane propane (LEP) and normal butane (NC4). ONEOK and MPLX will each contractually reserve 200,000 bpd for their respective customers, according to a statement. See more: Midstream Investing in NGLs Amid Record Exports The production of NGLs in the U.S. has grown alongside increasing oil and natural gas production. Advances in shale gas extraction have boosted NGL production in the U.S. NGLs are separated from the natural gas stream at gas processing facilities, before being further processed into purity products through fractionation.  Fractionation plants process NGLs into individual components such as propane, butane, ethane, isobutane, and natural gasoline. LPGs include propane, butane, and isobutane. See more: Propane Helps Fuel Midstream/MLP Growth Propane and butane are relatively familiar NGLs due to their use in consumer cooking applications. However, growing global demand for plastics is also driving the need for more propane.  Butane has a number of applications but is primarily blended into gasoline.Details on ONEOK and MPLX’s NGL Export Facility and PipelineThe export terminal joint venture, named Texas City Logistics LLC (TCX), is owned 50% by ONEOK and 50% by MPLX, according to the statement. Furthermore, MPLX is constructing and operating the facility, with the project expected to be completed in early 2028.  The pipeline joint venture, MBTC Pipeline LLC, is owned 80% by ONEOK and 20% by MPLX. ONEOK is constructing and operating the pipeline.  ONEOK’s and MPLX’s share of the total investment in the export terminal is expected to be approximately $700 million each, totaling $1.4 billion. Additionally, ONEOK’s and MPLX’s share of the total investment in the pipeline are expected to be approximately $280 million and $70 million, respectively, for a total of $350 million, according to the statement. Investors can get exposure to ONEOK and MPLX, as well as other midstream companies, with the  Alerian Energy Infrastructure ETF (ENFR ).  ENFR tracks the Alerian Midstream Energy Select Index (AMEI). The index is a composite of North American energy infrastructure companies, which includes MLPs and C-corps. AMEI is yielding 5.2% as of February 4. For more news, information, and analysis, visit the Energy Infrastructure Channel. vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for ENFR, for which it receives an index licensing fee. However, ENFR is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of ENFR.

More Commentary

Top Active ETF TCAF Adds More Than Half a Billion in 1 Month
BY | ETF Database
04/02/2025 | 43 VIEWS
Sell on the Pop Prospects: April 2 Edition
BY | ETF Database
04/02/2025 | 5 VIEWS
Gold's Rally Continues to Tee Up Opportunities for Miners
BY | ETF Database
04/02/2025 | 44 VIEWS
View more Commentary

Search Commentary

Enter Keyword(s)
Filter Results

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.