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Capstone Turbine received an order for three C65 microturbines for the Permian Basin, one of the largest oil and gas midstream operators based in North America. Lone Star Power Solutions, Capstone's exclusive distributor in Arizona, Texas and the Gulf States secured the order, which is expected to be commissioned in summer 2020.
The stand-alone microturbines will run all-electric power equipment at a remote operation while running on locally available high-pressure natural gas. Capstone microturbines were selected for their low emissions profile, low maintenance, and reliable power generation capabilities in remote locations.By utilizing on-site natural gas, oil and gas producers are able to reduce harmful emissions and also lower their operating expenses, which is desirable under today's depressed crude oil prices.
A recent report from Rystad Energy found that the Permian Basin held 74 percent of the nation's horizontal oil drilling, and continues to increase its share as other basins struggle amid the low-price market brought on by the pandemic. Despite the COVID-19 pandemic, the Permian Basin is emerging as the epicenter of drilling activity.