Project News / Energy & Solar
Texas Pacific Land Discloses $42.5 Million Land Sale for Chevron's Project Kilby
The quarterly filing details payments through 2046 and Texas Pacific Land's exclusive right to source aquifer water for Chevron's planned data center power plant in Reeves County.
Texas Pacific Land has disclosed $42.5 million in land consideration for Project Kilby, Chevron's planned power generation facility for a customer data center in Reeves County. The figure appeared in Texas Pacific Land's November 4 quarterly filing, which provides more detail about the land and brackish-water arrangement the companies announced on June 23.
The payment structure extends well beyond the closing date. Texas Pacific Land says it received a nominal cash payment at closing and is due annual payments through 2046. The $42.5 million is the aggregate consideration under that structure. The filing also describes repurchase options that can come into play if certain development milestones are missed, linking the land transaction to progress on the wider project.
The agreement also gives Texas Pacific Land the exclusive right to source aquifer-derived water for the generating facility and related parts of the development. That provision identifies the company's role in securing water for the project. The filing leaves the expected volumes and technical scope open, including how the water would be drawn, conveyed and handled before it reaches the facility.
Chevron U.S.A. is developing the generating facility to serve a customer data center. The power project's delivery schedule will matter to the customer because electricity must be available when the computing facilities are ready to operate. The land and water agreement establishes two elements of the site's development arrangements. Chevron's equipment selection, engineering and construction commitments remain to be disclosed.
The final investment decision on the project had been expected to possibly shift into 2027, with first power targeted for 2028. The November quarterly filing adds detail on the commercial agreement and payments through 2046. It does not confirm the power target or the timing of the investment decision. The EPC team, water infrastructure contractors and start of construction remain unverified.
