Chevron’s Project Kilby will develop 2.67 gigawatts of natural gas power generation in Reeves County, West Texas, to supply a Microsoft AI data center under a 20-year agreement, with first power expected in 2028 and full capacity anticipated by 2031. The project connects Permian natural gas to growing AI electricity demand, creating potential opportunities for gas infrastructure, power equipment, automation, maintenance and water services.

Chevron will transfer its Hess Midstream stake and DJ Basin midstream assets in exchange for $200 million and revised contracts expected to halve its Bakken unit midstream costs, with closing targeted for year-end 2026. Hess Midstream will become an independent, multi-basin operator, while Chevron’s planned reduction from three Bakken rigs to two signals lower near-term drilling demand and greater emphasis on production efficiency.