Other MPLX midstream assets



Wood River barge dock

Located on the Mississippi River in Wood River, Illinois, the dock is used both for crude oil barge loading and products barge unloading. The barge dock is connected to the MPLX Wood River tank farm by two pipelines. One that transfers crude oil from the tank farm to the dock, and another that transfers products and feedstocks from the dock to the tank farm.

This dock generates revenue through a Federal Energy Regulatory Commission tariff that’s collected for the transfer and loading and unloading of crude oil and products. According to a company presentation, the barge dock has approximately 84,000 barrels per day of throughput capacity.

Article continues below advertisement

Neal butane cavern

The butane cavern is located in Neal, West Virginia. The storage cavern has approximately 1.0 million barrels of storage capacity and is connected to Marathon Petroleum Corporation’s (MPC) Catlettsburg refinery. Rail access to the storage cavern is also available through MPC’s rail facilities.

Tank farms

MPLX also owns tank farms, or pipeline storage facilities in Patoka, Martinsville, and Wood River, Illinois, and Lebanon, Indiana, that are used for storing both crude oil and products. These tank farms can provide approximately 3.3 million barrels of available capacity.

These storage assets also serve as “breakout tanks” for the MPLX crude and product pipeline system, and help relieve surges in pipeline transportation. Both these functions make the tank farms crucial for the operation of the MPLX pipeline systems in these areas.

While the assets mentioned above are not MPLX mainstream assets, they play a crucial role in ensuring smooth operations. Through these assets and its commitments with MPC, MPLX generates a total annual revenue of $34 million, according to a company presentation.

Key ETFs

MPLX LP is a component of the Global X MLP & Energy Infrastructure ETF (MLPX). Its parent company, MPC, is a component of the Energy Select Sector SPDR Fund (XLE). MPC is also a component of broader market ETFs such the SPDR S&P 500 ETF Trust (SPY).

Continue on to read about why MPLX is integral to MPC and vice versa.


More From Market Realist