NextEra Energy to supply gas producer from 140-MW Texas wind project

US oil and gas producer Pioneer Natural Resources (NYSE:PXD) will off-take electricity from a 140-MW wind farm project to be developed by a unit of NextEra Energy Resources LLC in Texas.

The electricity from the future wind park will support Pioneer’s Permian Basin operations, it said last week without specifying the volumes to be procured through the deal. Targa Resources Corporation, which co-owned Midland Basin natural gas processing infrastructure with Pioneer, will also take part in the power purchase agreement (PPA).

The clean energy arm of utility NextEra Energy Inc (NYSE:NEE) will develop the wind project on Pioneer-owned surface acreage in Midland County. The plant is due to begin operations in 2024.

Separately, Pioneer is participating in Targa’s PPA tied to a 160-MW solar park in West Texas’ Concho Valley. The plant was brought online last month.

Both of the contracted projects will supply some of the electricity needed to operate the Midland Basin infrastructure and Pioneer’s field operations. Pioneer noted it will seek more wind and solar developments to back its operations in the Permian Basin to help it offset its Scope 2 emissions.

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