Constellation, ConocoPhillips Agree to Deal for Responsibly Produced Natural Gas
July 7, 2021
HOUSTON — Constellation, a leading competitive energy and energy solutions provider, today announced a one-year agreement in which the company will purchase responsibly produced natural gas from ConocoPhillips for use in power generation.
The agreement calls for ConocoPhillips to provide responsibly produced natural gas from its Permian Basin operations in West Texas for use at Exelon Generation’s Colorado Bend II power plant in Wharton, Texas. (Constellation is a business unit of Exelon Generation). This supply has a lower methane emissions intensity at the point of extraction than typical wells in the Permian basin, based on 2019 EPA Greenhouse Gas Reporting Program data and under the principles of the ONE Future protocol.
“This deal provides an exciting opportunity to explore efforts around lowering the production emissions associated with natural gas supply,” said Joe Liberatore, senior vice president, Origination, Constellation. “Our agreement with ConocoPhillips exemplifies Constellation’s commitment to offer sustainable solutions that help our customers meet their respective environmental goals. And, in this instance, we look forward to realizing these benefits firsthand as the customer.”
“We are encouraged by Constellation’s focus on responsibly produced natural gas,” said Lloyd Visser, vice president of Sustainable Development for ConocoPhillips. “We support the trend for differentiated products that include evaluation of life-cycle environmental and social performance.”
Exelon Generation continues to be the nation’s largest producer of emissions-free electricity while priding itself on seeking project partners who have a goal to significantly reduce GHG emissions. In operation since 2017, Colorado Bend II, a 1,140 MW combined-cycle gas and steam turbine generation facility, is among the cleanest, most efficient units of its kind nationwide.
The sale is a result of ConocoPhillips’ focus on lowering methane emissions intensity associated with the production of its natural gas supplies. Other ConocoPhillips initiatives include investing in technology to enhance Leak Detection And Repair (LDAR) best practices, as well as an active full-cycle water management program in the Delaware basin of the Permian that includes reuse and recycling as an alternative to drawing from limited local freshwater sources.
Constellation is a leading competitive retail supplier of power, natural gas and clean energy solutions for homes and businesses across the continental United States. Constellation's family of retail businesses serves approximately 2 million residential, public sector and business customers, including three-fourths of the Fortune 100. Baltimore-based Constellation is a subsidiary of Exelon Corporation (Nasdaq: EXC), the nation's leading competitive energy provider, with 2020 revenues of approximately $33 billion, and more than 30,000 megawatts of owned capacity comprising one of the nation's cleanest and lowest-cost power generation fleets. Learn more at www.constellation.com or on Twitter at @ConstellationEG.
For more information, contact:
Emily Kennedy, Constellation