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permian-basin

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World· Energy

Permian Gas Has Been Worth Less Than Nothing for 118 Days This Year

Chevron's subsidiary Energy Forge One has a 20-year deal with Microsoft to build a gas-fired power plant near a data center campus outside Pecos, Texas, that could reach about 2.67 gigawatts; a final investment decision is expected by year-end and power is planned for 2028. The project highlights a broader Permian Basin problem: record gas output and limited pipeline capacity have driven negative prices for producers much of this year, prompting buyers to place generation at the wellhead.

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