MPLX LP
For the period ended Dec 31, 2023. Filed Feb 28, 2024.
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FY2023 · Filed Feb 28, 2024
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Item 2. Properties
LOGISTICS AND STORAGE
Crude Oil and Refined Product Pipelines
The following table sets forth information regarding our crude oil and refined product pipeline systems as of December 31, 2023.
| Diameter | Length(miles) | |
|---|---|---|
| Crude Systems(1) | 2" - 42" | 5,159 |
| Refined Product Systems(2) | 4" - 36" | 3,788 |
(1) Includes approximately 16 miles of pipeline leased from third parties and 1,192 miles of inactive pipeline.
(2) Includes approximately 2 miles of pipeline leased from third parties, 201 miles of inactive refined product pipeline, 87 miles in which we have partial ownership of 65 percent and 17 miles in which we have partial ownership of 50 percent.
The following table sets forth information regarding the pipeline systems which we have an interest in through ownership of our equity method investments as of December 31, 2023.
| Diameter | Length(miles) | Ownership Percentage | |
|---|---|---|---|
| Crude Systems: | |||
| MarEn Bakken Company LLC(1) | 30" | 1,916 | 25% |
| Minnesota Pipe Line Company LLC | 16" - 24" | 975 | 17% |
| W2W Holdings LLC(2) | 24” - 36” | 652 | 50% |
| Illinois Extension Pipeline Company LLC | 24" | 168 | 35% |
| Andeavor Logistics Rio Pipeline LLC | 12" | 119 | 67% |
| LOCAP LLC | 48" | 57 | 59% |
| LOOP LLC(3) | 48" | 48 | 41% |
| Refined Product Systems: | |||
| Explorer Pipeline Company | 10" - 28" | 1,872 | 25% |
| Natural Gas and NGL Systems: | |||
| Whistler Pipeline LLC(4) | 36" - 42" | 498 | 38% |
| BANGL LLC(5) | 12" - 24" | 109 | 25% |
(1) The investment in MarEn Bakken Company LLC includes our 9.19 percent indirect interest in a joint venture that owns and operates the Dakota Access Pipeline and Energy Transfer Crude Oil Pipeline projects (collectively referred to as the “Bakken Pipeline system”).
(2) The investment in W2W Holdings LLC includes our 15 percent indirect interest in a joint venture that has partial ownership of the Wink to Webster pipeline system.
(3) LOOP LLC also includes the Louisiana Offshore Oil Port, a deepwater offloading oil port in the Gulf of Mexico, as well as temporary crude oil storage.
(4) Whistler Pipeline LLC also owns a 50 percent interest in a joint venture owning primarily natural gas storage facilities.
(5) BANGL LLC also owns a 42 percent interest in a 323 mile NGL pipeline.
Our crude oil pipeline and related assets are strategically positioned to support diverse and flexible crude oil supply options for MPC’s refineries, which receive imported and domestic crude oil through a variety of sources. Imported and domestic crude oil is transported to supply hubs from a variety of regions, including: Cushing, Oklahoma; Western Canada; Wyoming; North Dakota; the Gulf Coast and Patoka, Illinois. Crude oil pipelines from the Delaware and Midland Basins, as well as from the Bakken region transport crude oil into major regional takeaway pipelines and refining centers. Our major crude oil pipelines are connected to these supply hubs and transport crude oil to refineries owned by MPC and third parties.
Our pipelines are strategically positioned to supply feedstocks to MPC refineries and transport products from certain MPC refineries to MPC and MPLX operations, as well as those of third parties. Our refined product pipelines are integrated with MPC’s and MPLX’s expansive network of refined product terminals, which support MPC’s integrated business.
Terminal Assets
The following table sets forth certain information regarding our owned and operated terminals as of December 31, 2023.
| Owned and Operated Terminals(1) | Number of Terminals | Tank Shell Capacity (mbbls) | Number of Tanks |
|---|---|---|---|
| Refined Product Terminals: | |||
| Alabama | 2 | 443 | 16 |
| Alaska | 3 | 1,540 | 35 |
| California | 8 | 3,484 | 67 |
| Florida | 3 | 2,265 | 48 |
| Georgia | 4 | 982 | 30 |
| Idaho | 3 | 999 | 49 |
| Illinois | 2 | 562 | 15 |
| Indiana | 7 | 3,770 | 68 |
| Kentucky | 6 | 2,587 | 56 |
| Louisiana | 2 | 5,469 | 53 |
| Michigan | 8 | 2,440 | 73 |
| Minnesota | 1 | 13 | 5 |
| New Mexico | 2 | 470 | 21 |
| North Carolina | 3 | 1,343 | 26 |
| North Dakota | 1 | — | — |
| Ohio | 12 | 3,144 | 99 |
| Pennsylvania | 1 | 390 | 12 |
| South Carolina | 1 | 371 | 8 |
| Tennessee | 4 | 1,149 | 30 |
| Texas | 1 | 76 | 15 |
| Utah | 1 | 21 | 2 |
| Washington | 4 | 920 | 25 |
| West Virginia | 2 | 1,564 | 24 |
| Total Refined Product Terminals | 81 | 34,002 | 777 |
| Asphalt Terminals: | |||
| Arizona | 3 | 556 | 60 |
| Minnesota | 1 | — | — |
| Nevada(2) | 1 | 283 | 19 |
| New Mexico | 1 | 38 | 9 |
| Texas | 1 | 197 | 20 |
| Total Asphalt Terminals | 7 | 1,074 | 108 |
| Total Terminals | 88 | 35,076 | 885 |
(1) MPLX also has partial ownership interest in one terminal with a tank shell capacity of 415 mbbls, of which MPLX is not the operator.
(2) This terminal is accounted for as an equity method investment.
Marine Assets
The following table sets forth certain information regarding our marine assets in operation as of December 31, 2023. The marine business currently has an associated transportation service agreement with MPC.
| Marine Vessels | Number of Boats and Barges | Capacity(mbbls) |
|---|---|---|
| Inland tank barges | 305 | 8,123 |
| Inland towboats | 29 | N/A |
Our fleet of boats and barges transport light products, heavy oils, crude oil, renewable fuels, chemicals and feedstocks to and from refineries and terminals owned by MPC in the Mid-Continent and Gulf Coast regions. We also have a marine repair facility (“MRF”), which is a full-service marine shipyard, located on the Ohio River, adjacent to MPC’s Catlettsburg, Kentucky refinery.
The MRF is responsible for the preventive routine and unplanned maintenance of towing vessels, barges and local terminal facilities.
Refining Logistics Assets
The following table outlines the tankage owned by us, serving MPC’s refineries as of December 31, 2023. We also own and operate rail and truck racks and docks at certain of these refineries. Each of the following assets are currently included in storage services agreements with MPC.
| MPC Refining Logistics Assets | Tank Capacity (mbbls) |
|---|---|
| Galveston Bay, Texas City, Texas | 18,977 |
| Garyville, Louisiana | 16,466 |
| Los Angeles, California | 14,242 |
| Robinson, Illinois | 6,913 |
| Anacortes, Washington | 5,448 |
| Catlettsburg, Kentucky | 5,098 |
| Detroit, Michigan | 5,006 |
| El Paso, Texas | 5,084 |
| St. Paul Park, Minnesota | 3,983 |
| Kenai, Alaska | 3,488 |
| Mandan, North Dakota | 3,180 |
| Canton, Ohio | 2,695 |
| Salt Lake City, Utah | 2,139 |
| Total | 92,719 |
MPC formed the Martinez Renewables joint venture and began producing renewable diesel at the Martinez facility in 2023. MPLX owns refining logistics assets with 5,977 mbbls of storage capacity associated with the facility, and has entered into terminalling and storage service agreements with the joint venture and its partners to provide services for the facility.
Other L&S Assets
MPLX owns and operates various other midstream assets, including 31 barge docks with a total capacity of 4,859 mbpd and 8 storage caverns with a storage commitment of 3,632 mbbls. As of December 31, 2023, in addition to the storage tanks at MPC’s refineries, we operated 32 tank farms, including one leased tank farm, with total available storage capacity of 33,452 mbbls. Our operations also include a renewable fuels rail loading hub in North Dakota with 180 mbbls of storage capacity, and more than 100 miles of water pipeline systems in North Dakota and Wyoming dedicated to gathering and handling produced water associated with well completion and production activities. These assets each currently have associated service agreements with MPC or third parties.
GATHERING AND PROCESSING
The following tables set forth certain information relating to our consolidated and operated joint venture gas processing facilities, fractionation facilities, natural gas gathering systems, NGL pipelines and natural gas pipelines as of and for the year ended December 31, 2023. See further discussion about our joint ventures in Item 8. Financial Statements and Supplementary Data - Note 5.
Gas Processing Complexes
| Region | Design Throughput Capacity (MMcf/d) | Natural Gas Throughput(1)(MMcf/d) | Utilization of Design Capacity(1) |
|---|---|---|---|
| Marcellus Operations | 6,320 | 5,773 | 91% |
| Utica Operations | 1,325 | 564 | 43% |
| Southwest Operations(2) | 2,545 | 1,772 | 70% |
| Southern Appalachia Operations | 495 | 216 | 44% |
| Bakken Operations(3) | 185 | 163 | 88% |
| Rockies Operations | 1,177 | 483 | 41% |
| Total Gas Processing | 12,047 | 8,971 | 74% |
(1) Natural gas throughput is a weighted average for days in operation. The utilization of design capacity has been calculated using the weighted average design throughput capacity.
(2) The capacity presented above includes our proportionate share of Centrahoma Processing LLC’s processing capacity of 550 MMcf/d, as we own a non-operating 40 percent interest in this joint venture. Actual throughput of 159 MMcf/d representing our share of processed volumes is also included and used to compute the utilization presented above.
(3) Includes volumes processed at third-party facilities in the Bakken.
Fractionation Facilities
| Region | Design Throughput Capacity (mbpd) | NGL Throughput(1)(mbpd) | Utilizationof DesignCapacity(1) |
|---|---|---|---|
| Marcellus Operations(2)(3) | 413 | 323 | 78% |
| Utica Operations(2)(3)(4) | — | — | —% |
| Southern Appalachia Operations(2)(5) | 24 | 11 | 46% |
| Bakken Operations | 33 | 20 | 61% |
| Rockies Operations | 5 | 3 | 60% |
| Total C3+ Fractionation | 475 | 357 | 75% |
(1) NGL throughput is a weighted average for days in operation. The utilization of design capacity has been calculated using the weighted average design throughput capacity.
(2) Certain complexes have above-ground NGL storage with a usable capacity of 1,334 thousand barrels.
(3) The capacity, throughput and utilization of design capacity at the Hopedale fractionation complex is presented in the Marcellus Operations totals, however, the Hopedale fractionation complex is jointly owned by MarkWest Ohio Fractionation Company, L.L.C. (“Ohio Fractionation”) and MarkWest Utica EMG, L.L.C. (“MarkWest Utica EMG”). Ohio Fractionation is a joint venture between MarkWest Liberty Midstream & Resources, L.L.C. (“MarkWest Liberty Midstream”) and Sherwood Midstream (a joint venture between MarkWest Liberty Midstream and Antero Midstream LLC). MarkWest Liberty Midstream and Sherwood Midstream are entities that operate in the Marcellus region, and MarkWest Utica EMG is an entity that operates in the Utica region. During the year ended December 31, 2023, the Marcellus Operations and Utica Operations utilized an average of 89 percent and 11 percent of the Hopedale fractionation complex, respectively. Additionally, Sherwood Midstream has the right to fractionation revenue and the obligation to pay expenses related to 40 mbpd of capacity in the Hopedale 3 and 4 fractionators.
(4) We operate a condensate stabilization facility with a capacity of 23 mbpd and 77 thousand barrels of condensate storage that is owned by a joint venture in which we have a 62 percent ownership interest. Actual NGL throughput at this facility was 13 mbpd for the year ended December 31, 2023.
(5) This region includes complexes with both above-ground, pressurized NGL storage facilities, with usable capacity of 48 thousand barrels, and underground storage facilities, with usable capacity of 238 thousand barrels.
De-ethanization Facilities
| Region | Design Throughput Capacity (mbpd) | NGL Throughput(1)(mbpd) | Utilizationof DesignCapacity(1) |
|---|---|---|---|
| Marcellus Operations | 309 | 233 | 75% |
| Utica Operations | 40 | 7 | 18% |
| Rockies Operations | 5 | — | —% |
| Total De-ethanization | 354 | 240 | 68% |
(1) NGL throughput is a weighted average for days in operation. The utilization of design capacity has been calculated using the weighted average design throughput capacity.
Natural Gas Gathering Systems
| Region | Design Throughput Capacity (MMcf/d) | Natural Gas Throughput(1)(MMcf/d) | Utilization of Design Capacity(1) |
|---|---|---|---|
| Marcellus Operations | 1,622 | 1,389 | 88% |
| Utica Operations | 3,183 | 2,338 | 73% |
| Southwest Operations | 2,980 | 1,772 | 59% |
| Bakken Operations | 239 | 165 | 69% |
| Rockies Operations(2) | 1,637 | 593 | 36% |
| Total Natural Gas Gathering | 9,661 | 6,257 | 65% |
(1) Natural gas throughput is a weighted average for days in operation. The utilization of design capacity has been calculated using the weighted average design throughput capacity.
(2) Includes 102 MMcf/d of volumes gathered for third parties by our operated joint venture Rendezvous Gas Services, L.L.C. (“RGS”). Excludes RGS gathering capacity of 1,032 MMcf/d and volumes gathered by RGS which generally interconnect with our owned Rockies region gathering systems.
NGL Pipelines
| Region | Diameter | Length(miles) |
|---|---|---|
| Marcellus Operations | 4" - 20" | 448 |
| Utica Operations | 4" - 20" | 178 |
| Southern Appalachia Operations | 6" - 8" | 140 |
| Southwest Operations | 6" - 10" | 28 |
| Bakken Operations | 6" - 12" | 104 |
| Rockies Operations | 4" - 10" | 36 |
Title to Properties
We believe that our properties and facilities are adequate for our operations and that our facilities are adequately maintained. Substantially all of our pipelines are constructed on rights-of-way granted by the apparent record owners of the property. In many instances, lands over which pipeline rights-of-way have been obtained may be subject to prior liens that have not been subordinated to the right-of-way grants, as well as potential conflicts with other mineral or surface use owners. We have obtained, where determined necessary, permits, leases, license agreements and franchise ordinances from public authorities to cross over or under, or to lay facilities in or along water courses, county roads, municipal streets and state highways, as applicable. We also have obtained easements and license agreements from railroad companies to cross over or under railroad properties or rights-of-way. Some of the property rights we have obtained are revocable at the election of the grantor. In addition, we lease vehicles, building spaces, and pipeline equipment under long-term operating leases, most of which include renewal options. Many of our compression, processing, fractionation and other facilities, including certain fractionation plants and certain of our pipelines and other facilities, are on land that we either own in fee or that is held under long-term leases. For any such facilities that are on land that we lease, we could be required to remove our facilities upon the termination or expiration of the leases.
Some of the leases, easements, rights-of-way, permits, licenses and franchise ordinances that were transferred to us required the consent of the then-current landowner to transfer these rights, which in some instances was a governmental entity. We believe that we have obtained sufficient third-party consents, permits and authorizations for the transfer of the assets necessary for us to operate our business. We also believe we have satisfactory title or other right to our material land assets. Title to these properties is subject to encumbrances in some cases, such as coal, that may require payment to other holders of title in the property at issue; however, we believe that none of these burdens will materially detract from the value of these properties or from our interest in these properties, or will materially interfere with their use in the operation of our business. See Item 8. Financial Statements and Supplementary Data – Note 20, for additional information regarding our leases.
MPC indemnifies us for certain title defects and for failures to obtain certain consents and permits necessary to conduct our business with respect to the assets contributed to us by MPC. Although title to these properties is subject to encumbrances in some cases, such as customary interests generally retained in connection with acquisition of real property, liens that can be imposed in some jurisdictions for government-initiated action to clean up environmental contamination, liens for current taxes and other burdens, and easements, restrictions and other encumbrances to which the underlying properties were subject at the time of acquisition. We believe that none of these burdens should materially detract from the value of these properties or from our interest in these properties or should materially interfere with their use in the operation of our business.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.