A long-term contract where a buyer agrees to purchase electricity from a generator at a fixed price. For subcontractors, PPAs on large sites can affect whether temporary or permanent power infrastructure is in scope. Understanding site power arrangements helps clarify mobilisation costs and equipment requirements.
PPA (Power Purchase Agreement)
Related Terms
Oil Battery
IndustryA surface facility that receives, separates, measures, and stores crude oil from multiple wells. Subcontractors frequently work at batteries for maintenance, instrumentation, and tank servicing. It is a common site for ongoing field service scopes.
MTPA (Million Tonnes Per Annum)
IndustryA measure of a facility's annual production or processing capacity, expressed in millions of tonnes. Larger MTPA ratings typically signal longer project durations and higher subcontractor labour demand. Knowing a site's MTPA helps field service companies anticipate scope size and resource requirements.
CCUS (Carbon Capture, Utilization, and Storage)
IndustryTechnology that captures CO₂ emissions from industrial sites and either stores or repurposes them. Subcontractors are increasingly hired to build, maintain, and service CCUS infrastructure. Familiarity with these projects opens doors to growing work in emissions-reduction programmes.
Capital Discipline
IndustryWhen operators strictly control spending and delay or cancel projects to protect their balance sheets. For subcontractors, this means fewer awarded contracts, reduced scopes, and tighter bid competition. Expect slower mobilisation timelines and more rigorous cost justification from clients.
Carbon Capture
IndustryThe process of collecting and storing CO2 emissions from industrial sites before they reach the atmosphere. For subcontractors, it means growing work opportunities in facility retrofits, pipeline installation, and compression equipment servicing. Familiarity with CCS (Carbon Capture and Storage) infrastructure is increasingly expected on energy transition projects.
Ultra-Deepwater
IndustryOffshore drilling operations conducted in water depths exceeding 1,500 metres. Subcontractors working these projects require specialised certifications, equipment ratings, and offshore survival training. Mobilisation costs and logistics complexity are significantly higher than shallow-water scopes.
Latest Industry News
Fervo Energy and Google Sign Record 396 MW Geothermal PPA
Google's 396 MW power purchase agreement with Fervo Energy at Cape Station in Utah is the world's largest enhanced geothermal deal, with an option to expand to nearly 1 GW by 2030.
1 month agoIndustryMeta Signs PPA for 172-MW Louisiana Solar Project With Lightsource bp
Meta has finalized a power purchase agreement with Lightsource bp for the 172-MW Mowata Solar project in Acadia Parish, Louisiana, with construction slated to start later this year.
2 months agoIndustryGoogle Signs PPA for Arkansas Mega Solar Project Built by Moss
Google has signed a power purchase agreement for the majority output of Steel River Energy Center, a 2.5-GW solar-plus-storage project in Arkansas being installed by Moss, Solar Power World reports.
2 months agoRevenueSeneca Resources and Evolution Well Services Lock In Three-Year E-Frac Deal in Appalachia
Seneca Resources and Evolution Well Services have signed a three-year electric fracturing agreement in the Appalachian basin, using field-produced natural gas to power completion operations and cut diesel costs.
3 months agoRelated Guides
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Rig counts are the earliest signal of where field service work is heading. Learn how to read drilling activity trends, anticipate demand shifts, and position your crew before the phone stops ringing.
Industry GuideWhat Is an AFE in Oil and Gas and How Does It Affect Subcontractor Payments?
An AFE (Authorization for Expenditure) controls every dollar spent on an oilfield project. Learn how it affects your billing, change orders, and cash flow as a subcontractor.
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