Chevron secures 20-year Microsoft power supply contract and extends Australian gas deal

Chevron has signed a 20‑year power supply agreement with Microsoft to provide electricity directly to the tech giant’s data centre near Pecos, Texas. Under the Project Kilby plan, Chevron will build a gas‑fired power plant that can reach 2.67 GW, using low‑cost natural gas from the Permian Basin. Power deliveries are slated to begin in 2028, with a final investment decision expected by the end of 2026.

In Australia, Chevron Australia entered a long‑term sale and purchase agreement with Alinta Energy to supply 46 PJ of natural gas over five years, starting in July 2027. The gas will be sourced from Chevron‑operated Gorgon, Wheatstone and the North West Shelf projects, reinforcing Western Australia’s domestic energy security.

Institutional investors also adjusted their Chevron holdings. The State of Michigan Retirement System cut its stake by 1.2% to 489,639 shares worth about $101 million, while Welch & Forbes LLC reduced its position by 1.8% to 400,536 shares valued at roughly $83 million. These moves reflect ongoing portfolio rebalancing amid Chevron’s broader diversification into electricity for AI data centres and its continued gas supply commitments.