Coterra Energy Inc. has reached a natural gas sales agreement with Competitive Power Ventures (CPV) Group Ltd.’s Basin Ranch Energy Center, a proposed 1,350-Mw combined-cycle natural gas power plant in Ward County, Tex., being designed with the option to include a carbon capture system. The agreement to sell 50 MMcfd for a 7-year term is expected to start in 2028 and will be indexed to ERCOT West pricing.
Coterra also secured a right to purchase up to 250 Mw/day of power from the power plant, as part of its first power netback deal in the Permian basin. The company has two existing power netback deals in the Marcellus shale totaling 330 MMcfd.
CPV plans to start construction of Basin Ranch in third-quarter 2025 to hit a fourth-quarter 2028 start of commercial operations. The company says that ~95% of produced CO2 could be captured and used for enhanced oil recovery, with CCS operations to begin second-quarter 2029.
Chris brings 32 years of experience in a variety of oil and gas industry analysis and reporting roles to his work as Editor-in-Chief, specializing for the last 20 of them in the midstream and transportation sectors.
