Coterra Signs First Power Netback Gas Deal in Permian with CPV Power Plant

Coterra Energy has signed its first Permian power netback deal, agreeing to supply 50 MMcf/d to a 1,350-MW CPV power plant in Texas starting in 2028, priced at ERCOT West index levels.

(P&GJ) — Coterra Energy has signed a new power netback gas sales agreement tied to a proposed 1,350-MW natural gas power plant in the Permian Basin, the company announced Aug. 4.

The deal marks Coterra’s first power netback contract in the Permian. The company will supply 50 MMcf per day of natural gas for seven years beginning in 2028 to the CPV Basin Ranch Energy Center, a facility designed with optional carbon capture capabilities. The gas will be priced using ERCOT West index pricing, a key benchmark for Texas power markets.

“This agreement further diversifies our natural gas marketing portfolio,” Coterra stated in its second-quarter earnings release. The company already has 330 MMcf per day under power netback arrangements in the Marcellus Shale.

As part of the new deal, Coterra will also have the right to purchase up to 250 MW of power per day from the Ward County, Texas-based facility.

Coterra said it will continue to pursue power, LNG, data center, and other long-term strategies to diversify gas sales across its Permian, Marcellus, and Anadarko operating areas.

While the company also reported quarterly earnings, dividends, and updated production guidance, the Permian power agreement represents a strategic move in long-term gas monetization.