Permian Basin energy infrastructure expands via grid upgrades and new gas generation

Significant infrastructure and energy developments are underway in the Permian Basin to address rising electricity demand in West Texas.

The Public Utility Commission of Texas has unanimously approved the first routes for a $14 billion power grid expansion. This initial phase, managed by Oncor Electric Delivery, involves two corridors totaling approximately 424 miles of 765-kilovolt transmission lines across 32 counties. These projects, estimated to cost $3.9 billion, aim to enhance reliability and support the massive power needs of oil and gas operations, which could require over 17 gigawatts by 2032.

In a related move, Houston-based Net Power Inc. has signed a $20 million deposit and exclusivity agreement to add 123 MW of gas-fired generation capacity to its Project Permian. This agreement, which includes a cost-reimbursement arrangement with a prospective customer, brings the potential first-phase capacity of the one-gigawatt development to nearly 200 MW.