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ONEOK Partners, L.P. (OKS) today announced plans to invest $70 million to $100 million to expand its ONEOK WesTex Transmission (ONEOK WesTex) intrastate natural gas pipeline system by increasing its throughput capacity by 260 million cubic feet per day (MMcf/d) of natural gas by the first quarter 2017.

“This expansion project is complementary to our recently announced Roadrunner Gas Transmission pipeline project.  These integrated assets will provide markets in Mexico access to upstream supply basins in West Texas and the Mid-Continent, which adds location and price diversity to their supply mix,” said Terry K. Spencer, president and chief executive officer of ONEOK Partners.

The ONEOK WesTex expansion project, located in the Texas Panhandle and the Permian Basin in West Texas, includes the construction of two new compressor stations and upgrades or expansions to three existing compressor stations. Total added horsepower is expected to be approximately 38,800.  ONEOK WesTex, which had qualifying open season bids in excess of 500 MMcf/d, will utilize 240 MMcf/d of existing capacity and create additional capacity by expanding its system by 260 MMcf/d. Ninety percent of this total available capacity was subscribed with firm take-or-pay agreements through an open season process that ran from Feb. 2, 2015, to Feb. 27, 2015.

The Comision Federal de Electricidad (CFE), Mexico’s national electric utility, has agreed to be the anchor shipper and has subscribed to firm capacity (take-or-pay) for a 25-year term. CFE generates, distributes and markets electric power for almost 35.3 million customers in Mexico. According to the CFE, this long-term transportation position supports CFE’s strategy to bring natural gas to Mexico, which is a cleaner and less expensive fuel alternative for power generation in Mexico.

“Through the Roadrunner project, we are pleased to have developed a strategic relationship with the CFE. This expansion of ONEOK’s WesTex pipeline system will deepen this relationship while adding an additional source of fee-based earnings to ONEOK Partners,” continued Spencer.

The capacity is available in two phases. The first phase of capacity is approximately 100 MMcf/d and will be available in the first quarter 2016. The second phase of capacity is approximately 400 MMcf/d and will be available in the first quarter 2017.

ONEOK WesTex Transmission is an intrastate natural gas pipeline system operating within Texas, consisting of approximately 2,227 miles of pipeline. This project is subject to receipt of customary governmental approvals.

The Roadrunner Gas Transmission pipeline project is a 50-50 joint venture with a subsidiary of Fermaca Infrastructure B.V. (Fermaca), a Mexico City-based natural gas infrastructure company that will transport natural gas from the Permian Basin in West Texas to Mexico. It includes approximately 200 miles of new, 30-inch diameter pipeline currently designed to transport up to 640 million cubic feet per day (MMcf/d) of natural gas, with up to 570 MMcf/d to be transported to Mexico’s growing markets. The pipeline will extend from ONEOK WesTex’s natural gas pipeline system at Coyanosa, Texas, west to a new international border-crossing connection at the U.S. and Mexico border near San Elizario, Texas.

This project is expected to generate an adjusted EBITDA multiple of five to seven times.  The incremental earnings from this project are expected to increase distributable cash flow and value to unitholders supporting future cash distributions.

ONEOK Partners, L.P. (pronounced ONE-OAK) (OKS) is one of the largest publicly traded master limited partnerships in the United States and owns one of the nation’s premier natural gas liquids (NGL) systems, connecting NGL supply in the Mid-Continent, Permian and Rocky Mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. Its general partner is a wholly owned subsidiary of ONEOK, Inc. (OKE), a pure-play publicly traded general partner, which owns 36.8 percent of the overall partnership interest, as of June 30, 2015.

For more information, visit the website at www.oneokpartners.com.