FERC Approves Chesapeake Utilities Pipeline Expansion
Chesapeake Utilities has announced that the Federal Energy Regulatory Commission (FERC) has issued an order approving the Company's proposed Del-Mar Energy Pathway Project.
The order, which was applied for in September of 2018 by Eastern Shore Natural Gas Company, Chesapeake Utilities' interstate natural gas transmission subsidiary, approves the construction and operation of new infrastructure facilities in Kent and Sussex counties in Delaware, and Wicomico and Somerset counties in Maryland.
The project will add approximately 12 miles of natural gas infrastructure in Kent and Sussex counties and nearly seven miles of infrastructure in Wicomico and Somerset counties. Construction of the Del-Mar Energy Pathway Project is expected to commence within the first quarter of 2020. The estimated completion date will be the fourth quarter of 2021.
According to a recent study from the Regional Economic Studies Institute of Towson University, the infrastructure project would bring the following economic benefits to the region:
- Direct employment - individuals who are directly associated with the construction project
- In-direct employment - companies that benefit from increased demand and sales of their local services
- Induced employment – increased revenue for local employers and more discretionary spending for local residents
"The FERC's approval enables our Company to continue to meet the growing customer demand for natural gas service in the region," said Jeff Tietbohl, Vice President of Eastern Shore Natural Gas Company. "This project further expands our partnership in the local communities in which we live and work, bringing natural gas service to Somerset County for the first time."
Once in service, the new natural gas infrastructure will provide approximately 11.8 million cubic feet per day of additional natural gas firm transportation service and 2.5 million cubic feet of off-peak transportation service to Chesapeake Utilities' natural gas distribution subsidiaries on the Delmarva Peninsula and one industrial customer.
The estimated cost of the project is approximately $37 million.
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