MPLX LP is advancing two Permian Basin natural gas processing plants—Secretariat I and II—that will add 500 million cubic feet per day (MMcf/d) of combined processing capacity. The facilities will come online between late 2026 and 2028.
The projects target surging natural gas production in the Permian, which has increasingly become a gas basin alongside oil output. Permian gas production reached 23.5 billion cubic feet per day in 2024, up 40% from 2020 levels, creating sustained demand for midstream processing infrastructure.
MPLX, the midstream master limited partnership spun from Marathon Petroleum, operates existing processing capacity of over 9 billion cubic feet per day across multiple basins. The Secretariat plants expand its Permian footprint, where the company already operates gathering systems and processing facilities.
Natural gas processing separates natural gas liquids (NGLs) like ethane, propane, and butane from raw gas streams. These NGLs command premium pricing for petrochemical feedstock and export markets. Permian NGL production has grown to over 1.5 million barrels per day, making processing capacity a bottleneck constraint.
The 500 MMcf/d capacity addition positions MPLX to capture volumes from producers expanding Permian drilling programs. Major operators including Diamondback Energy, Occidental Petroleum, and ConocoPhillips have announced plans to maintain or increase Permian activity through 2028.
Midstream MLPs like MPLX typically secure long-term contracts with minimum volume commitments before sanctioning projects. These fee-based agreements provide predictable cash flows that support distributions to unit holders. MPLX currently yields approximately 8.2% based on recent distribution rates.
The Permian Basin accounts for roughly 45% of total U.S. crude production and an increasing share of natural gas output. Infrastructure investments are tracking this growth, with over $15 billion in announced midstream projects for the region through 2028.
MPLX has not disclosed specific capital costs for Secretariat I and II, but comparable 250 MMcf/d plants in the Permian typically require $500 million to $700 million in investment, suggesting a combined outlay exceeding $1 billion for both facilities.