ONEOK (OKE) and MPLX (MPLX) said Tuesday they have entered into joint ventures to develop a 400,000-barrel-per-day liquefied petroleum gas export terminal in Texas City, and a 24-inch pipeline linking ONEOK's Mont Belvieu storage site to the terminal.

The export terminal, equally owned by both partners, will require a $1.40 billion investment split between the two companies and is projected to be operational by early 2028, they added.

The facility will primarily handle low ethane propane and normal butane, with each company securing 200,000 barrels per day for their respective clients, the joint statement said.

The companies also said the pipeline project, with ONEOK holding an 80% stake and MPLX 20%, will cost $350 million, with ONEOK responsible for its construction and operation.

ONEOK's total capital commitment for the projects is approximately $1 billion.