HOUSTON, Sept 26 (Reuters) - A Texas commission

unanimously on Thursday approved the Permian Basin Reliability

Plan, which is designed to expand power grid infrastructure in

the United States' largest oilfield to accommodate rapidly

growing demand from the oil and gas industry.

The Public Utility Commission of Texas (PUCT) directed the

Electric Reliability Council of Texas (ERCOT) to compile the

plan in December last year, two months after ConocoPhillips ( COP )

, ExxonMobil ( XOM ), Pioneer Natural Resources (PXD.N),

Diamondback, Chevron ( CVX ) and Devon Energy ( DVN )

submitted a report with financial information company S&P Global

warning the commission of a significant increase in electric

load demand in the Permian basin in the coming years.

CONTEXT

Electrifying oilfield operations can reduce emissions and

eliminate pollution and noise associated with diesel-powered

rigs and fracking equipment.

The Texas power grid has come under significant strain, with

the state home to some of the most energy-intensive industries,

including data centers, cryptocurrency mining and oilfield

operations.

Surging population growth and sweltering heat have also

increased stress on Texas' vulnerable electrical grid, last

month driving demand to a record high.

Around 29% of surveyed respondents who had participated in

the latest Dallas Fed Energy Survey said uncertainty about grid

access was a top challenge to electrifying their operations.

Another quarter of those polled primarily cited grid

infrastructure challenges as a hurdle to electrification.

BY THE NUMBERS

ERCOT, which operates most of the state's power grid for 27

million customers, forecasts electricity demand in the Permian

Basin could grow to nearly 27 gigawatts by 2038, equal to almost

a third of the current summer demand of the entire ERCOT system,

according to ERCOT.

ERCOT estimates that the required transmission upgrades to

meet the jump in demand could range between $12.95 billion and

$15.32 billion.

KEY QUOTE

"Ensuring the Permian Basin has the reliable electricity it

needs to power Texas' world-leading oil and gas industry is a

top priority for the Commission, and we have taken swift action

to direct ERCOT to develop a transmission infrastructure plan

for the region," PUCT Commissioner Lori Cobos said.