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Texas Greenlights $216 Million Loan For 456 Mw Houston Gas Plant

oil-gas

27 August 2025

Pipeline Gas Journal

oil-gas

Aug 27, 2025

Pipeline Gas Journal

Pipeline Gas Journal

(P&GJ) — Governor Greg Abbott announced on Aug. 4 that the Texas Energy Fund (TEF) has approved a low-interest loan to support construction of a 456-megawatt natural gas power plant in Houston. The project is being developed by NRG Energy Inc. and is expected to begin operations by summer 2026.

“This 456 megawatt investment in the Texas grid will help bear the load of the largest electricity demand area in the state, further ensuring reliable and affordable power for countless homes and businesses in the greater Houston area,” Abbott said.

The new unit will be built at NRG’s existing TH Wharton Generating Station and will connect to the Electric Reliability Council of Texas (ERCOT) Houston Load Zone, which includes Houston, Pasadena, and The Woodlands.

Under the agreement, total project costs are estimated at under $360 million. The Public Utility Commission of Texas (PUC) is providing a 20-year TEF loan of up to $216 million, or 60% of the cost, at a 3% interest rate. The loan term runs from July 31, 2025, through July 30, 2045.

“This new power plant marks another major investment in Texas and in the ERCOT grid, helping prepare our state’s power supply to meet the demands of the future,” said PUC Chairman Thomas Gleeson.

NRG’s Robert J. Gaudette, executive vice president and president of NRG Business and Wholesale Operations, said construction of the project is already generating jobs. “Once online next year it will provide additional permanent jobs, enhanced grid stability, and regional economic growth,” he said.

The TEF loan program was created to add new, dispatchable power to ERCOT through low-interest financing. In addition to this loan, one other TEF project has already been approved, representing a combined 578 MW of new capacity. Fifteen more applications are under review, totaling 8,392 MW of proposed generation.

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Texas Greenlights $216 Million Loan For 456 Mw Houston Gas Plant

Texas Greenlights $216 Million Loan For 456 Mw Houston Gas Plant(P&GJ) — Governor Greg Abbott announced on Aug. 4 that the Texas Energy Fund (TEF) has approved a low-interest loan to support construction of a 456-megawatt natural gas power plant in Houston. The project is being developed by NRG Energy Inc. and is expected to begin operations by summer 2026. “This 456 megawatt investment in the Texas grid will help bear the load of the largest electricity demand area in the state, further ensuring reliable and affordable power for countless homes and businesses in the greater Houston area,” Abbott said. The new unit will be built at NRG’s existing TH Wharton Generating Station and will connect to the Electric Reliability Council of Texas (ERCOT) Houston Load Zone, which includes Houston, Pasadena, and The Woodlands. Under the agreement, total project costs are estimated at under $360 million. The Public Utility Commission of Texas (PUC) is providing a 20-year TEF loan of up to $216 million, or 60% of the cost, at a 3% interest rate. The loan term runs from July 31, 2025, through July 30, 2045. “This new power plant marks another major investment in Texas and in the ERCOT grid, helping prepare our state’s power supply to meet the demands of the future,” said PUC Chairman Thomas Gleeson. NRG’s Robert J. Gaudette, executive vice president and president of NRG Business and Wholesale Operations, said construction of the project is already generating jobs. “Once online next year it will provide additional permanent jobs, enhanced grid stability, and regional economic growth,” he said. The TEF loan program was created to add new, dispatchable power to ERCOT through low-interest financing. In addition to this loan, one other TEF project has already been approved, representing a combined 578 MW of new capacity. Fifteen more applications are under review, totaling 8,392 MW of proposed generation.

Pipeline Gas Journal

Texas Greenlights $216 Million Loan For 456 Mw Houston Gas Plant

Texas Greenlights $216 Million Loan For 456 Mw Houston Gas Plant

Pipeline Gas Journal

Oman’S Abraj Gets $220M Oil Drilling Contract Extension

Oman’S Abraj Gets $220M Oil Drilling Contract ExtensionOccidental Oman (Oxy) has extended a five-year oil drilling contract to Abraj Energy Services in an onshore block in the north of the Gulf state. The new contract will extend drilling services at Block 53 until August 2030 in four oil rigs, Abraj said in an Omani bourse disclosure. Block 53 is located in the Mukhaizna fields that hold 600 million barrels of crude oil reserve. Oxy holds the majority shareholding of Block 53 and pledged it would spend $30 billion in exploration investments in the heavy oil field in Mukhaizna. This is the third oil drilling contract Abraj has won this year. In June, State-run Petroleum Development Oman awarded Abraj a six-year oil drilling contract in an onshore block 6 in the north of the Gulf state. In May, BP Exploration awarded Abraj a $32 million contract to drill for gas in Oman’s Khazzan field, one of the sultanate’s largest. Abraj, a subsidiary of state-owned OQ, listed nearly half of its capital on the Omani bourse in a $244 million initial public offering in February 2023. Its share price of OR0.28 ($0.73) has declined by around a third in the year to date. AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Already registered? Sign in I’ll register later AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Already registered? Sign in I’ll register later

Arabian Gulf Business Insight

Oman’S Abraj Gets $220M Oil Drilling Contract Extension

Oman’S Abraj Gets $220M Oil Drilling Contract Extension

Arabian Gulf Business Insight

Petrochina To Acquire Cnpc Gas Storage Facilities In $5.6 Billion Deal

Petrochina To Acquire Cnpc Gas Storage Facilities In $5.6 Billion Deal(Reuters) – PetroChina has proposed to take over three natural gas storage facilities from its controlling shareholder, state-owned China National Petroleum Corporation, in a deal worth 40.02 billion Chinese yuan ($5.59 billion), the company said on Aug. 26. The deal comes as PetroChina looks to ensure stable operation and high-quality development of its natural gas industrial chain. The transaction is estimated to add 10.97 billion cubic meters of working gas storage capacity to the company's portfolio. PetroChina is riding the country's increasing reliance on natural gas, a lower-emission fuel viewed as a key bridge in its shift to greener energy. The largest Chinese oil and gas firm posted a 5.4% decline in first-half net income earlier in the day. However, the company's gas segment reported 18.6 billion yuan in earnings, which was higher than the amount logged in the same period a year ago. PetroChina expects Chinese oil demand to continue facing competition from alternative energy. However, it projects natural gas demand to recover and grow rapidly. ($1 = 7.1529 Chinese yuan renminbi)

Pipeline Gas Journal

Petrochina To Acquire Cnpc Gas Storage Facilities In $5.6 Billion Deal

Petrochina To Acquire Cnpc Gas Storage Facilities In $5.6 Billion Deal

Pipeline Gas Journal

Petrochina Proposes To Buy Gas Facilities From Cnpc In $5.59-B Deal

Petrochina Proposes To Buy Gas Facilities From Cnpc In $5.59-B DealPetroChina on Tuesday proposed to take over three natural gas storage facilities from its controlling shareholder, state-owned China National Petroleum Corporation (CNPC), in a deal worth 40.02 B Chinese yuan ($5.59 B). The deal comes as China's biggest oil and gas producer looks to ensure stable operation and develop its natural gas industrial chain, aiming to capitalize on the country's increasing reliance on the lower-emissions fuel critical to the shift to greener energy. "This will enhance adjustment efficiency and maximize the overall benefits of the natural gas industry chain," PetroChina said in an exchange filing. The deal is estimated to add 10.97 Bm3 of working gas storage capacity to its portfolio. PetroChina has approved the plan to buy Xinjiang Gas Storage, Xiangguosi Gas Storage and Liaohe Gas Storage from its top shareholder. China has been stepping up natural gas use to strengthen energy security and cut reliance on coal, part of its push to lower emissions and improve air quality. PetroChina also posted a 5.4% decline in first-half net income earlier in the day. However, the company's gas segment reported 18.6 B yuan in earnings, higher than a year ago. PetroChina expects Chinese oil demand to continue facing competition from alternative energy, but it projects natural gas demand to recover and grow rapidly. ($1 = 7.1529 Chinese yuan renminbi)

Gas Processing and LNG

Petrochina Proposes To Buy Gas Facilities From Cnpc In $5.59-B Deal

Petrochina Proposes To Buy Gas Facilities From Cnpc In $5.59-B Deal

Gas Processing and LNG

450-Mile Eiger Express Pipeline Gets Green Light For Permian-To-Gulf Natural Gas Transport

450-Mile Eiger Express Pipeline Gets Green Light For Permian-To-Gulf Natural Gas Transport(P&GJ) — A major natural gas pipeline project connecting the Permian Basin to the Gulf Coast has received final investment approval, marking another significant infrastructure development in the booming West Texas energy corridor. The Eiger Express Pipeline, a 450-mile, 42-inch diameter project, will transport up to 2.5 billion cubic feet per day of natural gas from the Permian Basin to the Katy area near Houston. The pipeline is expected to begin operations in mid-2028, pending regulatory approvals. WhiteWater announced on Aug. 25 that it has partnered with MPLX LP, ONEOK, Inc. and Enbridge Inc. through their Matterhorn joint venture to move forward with construction after securing sufficient firm transportation agreements with primarily investment-grade shippers. The pipeline will source natural gas from multiple Permian Basin connections, including gas processing facilities in the Midland Basin and from the Delaware Basin via the existing Agua Blanca Pipeline, which is jointly owned by WhiteWater, Enbridge and MPLX. Ownership of the Eiger Express Pipeline is structured as a joint venture, with the Matterhorn joint venture holding a 70% stake, while ONEOK and MPLX each maintain 15% direct ownership positions. Combined with their ownership through the Matterhorn venture, ONEOK will hold 25.5% total ownership and MPLX will control 22% of the pipeline. WhiteWater will handle both construction and operations of the new pipeline system, adding to the growing network of natural gas infrastructure designed to move Permian production to Gulf Coast markets and export facilities. The project represents continued investment in midstream infrastructure as Permian Basin natural gas production continues to expand, requiring additional takeaway capacity to reach domestic and international markets. Mary Holcomb is the Digital Editor & Operations Manager at Gulf Energy Information, overseeing the Pipeline & Gas Journal, World Oil, and Underground Infrastructure brands. With over 5 years of experience, she drives digital content strategy and operations for these industry-leading publications.

Pipeline Gas Journal

450-Mile Eiger Express Pipeline Gets Green Light For Permian-To-Gulf Natural Gas Transport

450-Mile Eiger Express Pipeline Gets Green Light For Permian-To-Gulf Natural Gas Transport

Pipeline Gas Journal

Enterprise Closes $580 Million Purchase Of Occidental Gas Gathering System

Enterprise Closes $580 Million Purchase Of Occidental Gas Gathering System(P&GJ) — Enterprise Products Partners has closed its acquisition of Occidental Petroleum’s natural gas gathering affiliate in the Permian Basin for $580 million in cash. The deal includes natural gas gathering systems in the Midland Basin and about 200 miles of pipelines supporting Occidental’s production in the region. Enterprise said the acquisition expands its footprint in the basin and provides long-term development visibility with access to more than 1,000 drillable locations. “By acquiring these gathering systems, we are enhancing our ability to support Midland Basin production and strengthen our natural gas value chain in the Permian,” Enterprise said in a statement. The transaction was completed on a debt-free basis. Troutman Pepper Locke and Sidley Austin LLP advised Enterprise, while Skadden, Arps, Slate, Meagher & Flom LLP and White & Case LLP advised Occidental.

Pipeline Gas Journal

Enterprise Closes $580 Million Purchase Of Occidental Gas Gathering System

Enterprise Closes $580 Million Purchase Of Occidental Gas Gathering System

Pipeline Gas Journal

Cenovus To Acquire Oil Sands Producer Meg For $5.7 Billion

Cenovus To Acquire Oil Sands Producer Meg For $5.7 BillionCenovus Energy has entered into a definitive agreement to acquire MEG Energy in a cash and stock transaction valued at $7.9 billion CAD ($5.7 billion USD), inclusive of assumed debt. The deal follows MEG's recent rejection of a lesser takeover bid from Strathcona Resources. The acquisition brings together two leading SAGD oil sands producers with combined oil sands production of over 720,000 bpd, the lowest steam-to-oil ratio and the largest land base in the best quality resource area in the basin. Cenovus also stated the deal consolidates adjacent, fully contiguous and highly complementary assets at Christina Lake, enabling integrated development of the region and unlocking significantly accelerated access to previously stranded resource. “This transaction represents a unique opportunity to acquire approximately 110,000 barrels per day of production within some of the highest quality, longest-life oil sands resource in the basin, which sits directly adjacent to our core Christina Lake asset,” said Jon McKenzie, Cenovus President & Chief Executive Officer. “The magnitude of synergies that we have identified makes this a compelling value creation opportunity for Cenovus shareholders. The team at MEG has done a fantastic job developing these assets, and we look forward to leveraging our combined expertise and scale to drive additional value for many years to come.”

Cenovus To Acquire Oil Sands Producer Meg For $5.7 Billion

Cenovus To Acquire Oil Sands Producer Meg For $5.7 Billion

Cpp Investments Sells Us$1.4 Billion Stake In Peruvian Gas Pipeline To Eig

Cpp Investments Sells Us$1.4 Billion Stake In Peruvian Gas Pipeline To EigThe Canada Pension Plan Investment Board (CPP Investments) has agreed to sell its nearly 50% stake in Transportadora de Gas del Peru S.A. pipeline, one of the country's main energy infrastructure assets, to a group of funds managed by EIG, a global institutional investor in the energy and infrastructure sectors. Announced on Wednesday, August 12, 2025, the transaction marks the end of CPP Investments' decade-long involvement with TgP, which it first invested in back in 2013. CPP Investments' head of infrastructure, James Bryce, stated that the investment "delivered strong returns for contributors and beneficiaries," adding that the organisation would continue to evaluate opportunities in Latin America. Over its tenure, the Canadian fund deployed a total of US$1.4 billion into TgP, expanding its holding through follow-on transactions between 2014 and 2017. TgP plays a critical role in Peru's energy landscape, operating the country's primary natural gas and natural gas liquids pipelines. These pipelines, held under a long-term concession, are responsible for supplying roughly 40% of the nation's power generation. For EIG, the acquisition is a strategic move to bolster its presence in the region. EIG's global head of infrastructure, Matt Hartman, said the firm plans to leverage its extensive experience in both infrastructure and regional markets to support TgP's operational reliability and ensure it maintains its crucial role in Peru's energy sector. While the financial details of the deal have not been disclosed, they will be revealed upon completion. The sale is subject to standard closing conditions and regulatory approvals.

Pipeline Technology Journal

Cpp Investments Sells Us$1.4 Billion Stake In Peruvian Gas Pipeline To Eig

Cpp Investments Sells Us$1.4 Billion Stake In Peruvian Gas Pipeline To Eig

Pipeline Technology Journal

Eversource Replacing 18,600 Feet Of Connecticut Gas Lines With Modern Plastic Pipe

Eversource Replacing 18,600 Feet Of Connecticut Gas Lines With Modern Plastic Pipe(P&GJ) — Eversource is replacing more than 18,600 feet of aging natural gas lines in Danbury, Conn., as part of an accelerated program to improve safety and reliability for customers. The work involves swapping out leak-prone cast iron and bare steel pipes with high-density plastic, which is designed to last for decades. Since 2018, the utility has replaced nearly 200 miles of older gas mains across the state. “Cast iron and bare steel mains become brittle over time due to the freezing and thawing cycles we experience in Connecticut, which is why for the last several years replacing those leak-prone pipes has remained a top priority for us,” said Michael Needham, Eversource vice president of gas operations. “These vital improvements reduce carbon emissions, modernize the gas distribution system, and minimize repairs and any service interruptions. Not only do these critical investments result in strengthened reliability for our customers, but they also enhance public safety for our communities.” The project includes replacing dozens of customer service lines and moving most inside gas meters outdoors. Work is taking place in multiple areas, including 9th, Forest, Virginia and Westville Avenues; Ohehyahtah Place; Golden Hill Road; and 5th, Abbott, Beckett, James, Montgomery, Stevens, West, West Wooster and White Streets. Eversource is coordinating with community leaders to reduce traffic impacts and align with other roadwork. Customers may experience brief service interruptions during line activation, with advance notice provided. Weather permitting, the current upgrades will be completed by year-end, with final road restoration dependent on project timelines. An additional 25,000 feet of gas main replacement in Danbury is planned for 2026.

Pipeline Gas Journal

Eversource Replacing 18,600 Feet Of Connecticut Gas Lines With Modern Plastic Pipe

Eversource Replacing 18,600 Feet Of Connecticut Gas Lines With Modern Plastic Pipe

Pipeline Gas Journal

Targa Resources Tops Profit Estimates On Record Gas Volumes, Expands $1 Billion Buyback

Targa Resources Tops Profit Estimates On Record Gas Volumes, Expands $1 Billion Buyback(Reuters) — Pipeline operator Targa Resources beat second-quarter adjusted core profit estimates, driven by record-high volumes of natural gas and natural gas liquids transported through its system. The company also announced a new $1.0 billion share repurchase program in addition to its previous $1 billion plan. Shares were up 2.6% at $167.32 in premarket trading. Demand for natural gas has risen in recent quarters, driven by surging power demand from energy-hungry data centers and growing domestic consumption, helping firms like Targa, which transport natural gas. In April, the U.S. Energy Information Administration said U.S. power consumption will hit new record highs in 2025 and 2026, on the back of data centers dedicated to AI and cryptocurrency. The company's quarterly Permian natural gas inlet volumes rose about 11% to a record 6.28 billion cubic feet per day from a year earlier, while NGL pipeline transportation volumes surged about 23% also to a record 961,200 barrels per day. The Houston, Texas-based company's adjusted core profit rose 18% to $1.16 billion for the quarter ended June 30, from a year earlier, beating analysts' average estimate of $1.14 billion, according to LSEG data. Total revenue rose 20% to $4.26 billion, helped by higher NGL volumes and natural gas prices, though partially offset by lower NGL prices. Targa supplies natural gas and NGLs to key markets through its network of gathering and processing assets across the Permian Basin, Eagle Ford Shale, Bakken Shale and other major U.S. oil and gas regions. The company transports, processes and fractionates NGLs into component products like ethane, propane and butane.

Pipeline Gas Journal

Targa Resources Tops Profit Estimates On Record Gas Volumes, Expands $1 Billion Buyback

Targa Resources Tops Profit Estimates On Record Gas Volumes, Expands $1 Billion Buyback

Pipeline Gas Journal

Milbank Advises Ypf On $500 Million Acquisition Of Totalenergies Oil And Gas Blocks

Milbank Advises Ypf On $500 Million Acquisition Of Totalenergies Oil And Gas BlocksMilbank LLP is advising YPF S.A. in connection with its definitive agreement with Total Austral S.A., an affiliate of TotalEnergies, to acquire a 45% interest in Rincón La Ceniza and La Escalonada, two unconventional oil and gas blocks located in Argentina, for $500 million. Closing of the transaction is subject to the satisfaction of certain closing conditions. Located in the Vaca Muerta shale formation, the Rincón La Ceniza and the La Escalonada blocks are currently in a pilot development phase. Total Austral’s partners in these blocks are Gas y Petroleo de Neuquen (10%) and O&G Developments Ltd S.A (45%), owned by Shell. Argentina’s Vaca Muerta shale formation is the world’s second-largest unconventional gas reserve. The Milbank team was led by Global Corporate/M&A partners Francisco Nuñez and Ross Shepard and associate Francisco Troconis.

Milbank Advises Ypf On $500 Million Acquisition Of Totalenergies Oil And Gas Blocks

Milbank Advises Ypf On $500 Million Acquisition Of Totalenergies Oil And Gas Blocks

Israel, Egypt Reach $35 Billion Deal For Natural Gas Supply

Israel, Egypt Reach $35 Billion Deal For Natural Gas SupplyThe deal reflects Egypt’s desperate need for gas due to surging domestic demand and declining output from its own fields. While the multiyear contract offers lower prices than those available on the short-term global market, it calls into question the North African country’s aspiration to return to being an exporter of the fuel. Leviathan’s operators signed an agreement to send 130 billion cubic meters of gas to Egypt from 2026 to 2040, Israel’s NewMed Energy LP, which is a partner in the project, said in a statement on Thursday. The export deal is worth about $35 billion, making it the largest in Israel’s history, it said. The gas field already has a contract to send around 4.5 billion cubic meters a year to Egypt, which will rise in stages starting next year and could reach as much as 12.5 billion cubic meters a year by 2033. Egypt also purchased 2.5 billion cubic meters last year on the short-term market, a volume that can vary from one year to the next. Egypt became a net gas importer in 2024 and has since been buying up large volumes of liquefied natural gas, doing deals for supplies out to 2028. The additional Israeli flows may mean Cairo can import less LNG in the future than it would otherwise have had to do. Importing LNG has also raised Egypt’s overall costs because the super-chilled fuel costs more than twice as much as pipeline gas from Israel. “This is a win-win for both sides. It means tremendous savings to the Egyptian market vis-a-vis LNG imports — it’s 50% down on the current LNG import market,” NewMed CEO Yossi Abu said in an interview. “It provides security of energy supply for many, many years to come to feed the growth of the Egyptian economy.” While Leviathan’s gas is cheaper, the interruption of flows from Israel to Egypt because of the war with Iran in June highlighted possible vulnerabilities in the supply route. The disruption forced Cairo to halt supplies to some industries including fertilizer producers. Under the new agreement, gas will be delivered to buyer Blue Ocean Energy over 14 years with payments determined by a formula based on the price of Brent crude oil. During the first phase of the deal, set to take effect next year, 20 billion cubic meters of gas will be delivered to Egypt. The second phase, totaling around 110 billion cubic meters, requires completion of the Leviathan expansion project and the construction of a new pipeline from Israel to Egypt via Nitzana. Shares of NewMed rose as much as 6.4% in Tel Aviv, the steepest intraday gain since Feb 4. NewMed holds a 45.34% stake in Leviathan alongside Chevron Corp. with 39.66% and Ratio Energies LP with 15%.

Israel, Egypt Reach $35 Billion Deal For Natural Gas Supply

Israel, Egypt Reach $35 Billion Deal For Natural Gas Supply