5/23/2024
(P&GJ) — Conduit Power LLC and Riley Exploration Permian Inc. have announced an expansion of their joint venture, RPC Power LLC, aiming to bolster the sale of energy and ancillary services to ERCOT, the Texas power grid operator.
Established in March 2023, RPC Power initially focused on owning and operating power generation assets utilizing Riley Permian’s natural gas for oilfield operations in Yoakum County, Texas. However, the recent expansion broadens RPC Power’s scope, enabling the sale of dispatchable power and related services to ERCOT. Plans include the construction of 100MW natural gas-fueled generation and battery energy storage systems across multiple West Texas facilities, slated for commercial operations by 2025.
Under the new agreements, Conduit will oversee facility operations and power dispatch into ERCOT, leveraging its qualified scheduling entity. Additionally, Riley Permian has increased its ownership in RPC Power to 50% and agreed to supply up to 10 MMcf/d of natural gas as feedstock for the generation facilities.
Travis Windholz, Managing Director of Conduit, expressed pride in the partnership’s evolution, emphasizing Conduit’s decentralized generation approach prioritizing grid resiliency, flexibility, and profitability. Windholz highlighted the environmental benefits of replacing legacy generation with more efficient mobile engine technology, contributing to emissions reduction.
Philip Riley, CFO of Riley Permian, echoed enthusiasm for the venture’s new phase, citing the strategic alignment with West Texas market dynamics. With abundant natural gas production and a demand for reliable power, Riley sees an opportunity to enhance value, diversify revenue, and capitalize on attractive power market fundamentals.”
