Houston-based Conduit Power recently made financial agreements with Midland’s Diamondback Energy and Granite Ridge Resources to develop 200 megawatts of new natural gas power generation facilities for the sale of energy and related services to ERCOT. Conduit will build, own and operate a total of 200 megawatts of distributed power generation capacity in west Texas.
Conduit said its distribution-scale power resources “can be placed into service quickly and efficiently to increase grid reliability, help stabilize this imbalance and generate a significant return on invested capital.” Diamondback and Granite Ridge each will commit to a fixed-capacity payment to Conduit in exchange for a preferred share of power generated by Conduit. The facilities are targeted for phased installation beginning this year.
Matthew Herpich, CEO of Conduit, said Dec. 17, “This arrangement allows Conduit to scale dispatchable generation in ERCOT alongside two premier upstream companies, Diamondback and Granite Ridge… We can deliver reliable power to the grid while creating durable value to Texas power markets.” Tyler Farquharson, president and CEO of Granite Ridge, added, “For years the Permian has suffered from a lack of takeaway capacity for its associated gas. We see this as a win-win opportunity….”
Herpich said Conduit will develop twenty 10-megawatt generation plants at distribution substations.