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Conduit Power to Develop 200 MW of Distributed Gas-Fired Generation in ERCOT, Announces Financial Partners

December 17, 2025

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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Conduit Power, LLC has entered into financial agreements with Diamondback Energy, Inc. and Granite Ridge Resources related to Conduit’s development of 200 megawatts of new natural gas power generation assets for the sale of energy and ancillary services in ERCOT

Under the agreements, Conduit will build, own, and operate a total of 200 MWs of distributed power generation capacity to be "strategically" located across ERCOT’s West load zone.

Diamondback and Granite Ridge will each commit to a fixed capacity payment to Conduit in exchange for a preferred share of power proceeds generated by Conduit, Conduit said

The facilities are targeted for phased installation with the first sites achieving commercial operation in 2026.

“For years the Permian has suffered from a lack of takeaway capacity for its associated gas,” said Tyler Farquharson, President and CEO of Granite Ridge. “We see this as a win-win opportunity for our shareholders to participate in enhanced well-level economics through power sales and bring up to 200 MWs of much needed new power generation to the ERCOT grid.”

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