Chesapeake Utilities Corporation and its subsidiary, Peninsula Pipeline Company, announced the Florida Energy Pathway, a new intrastate natural gas infrastructure project in south Florida.
This project will be developed, constructed and operated by PPC in order to expand natural gas transportation capacity to address regional supply constraints, enhance system reliability and extend natural gas infrastructure to serve homes and businesses.
Florida Energy Pathway to expand natural gas capacity in south Florida
FEP is anticipated to be a 24-inch intrastate natural gas pipeline originating in Palm Beach County and terminating in Miami-Dade County. The project is anchored by firm commitments totaling nearly 250,000 dekatherms per day from multiple investment grade shippers. Upstream capacity will be supplied by Florida Gas Transmission in conjunction with its Phase IX expansion. PPC is also accepting binding commitments with additional shippers for firm transportation service.
Total project investment is estimated to be approximately $1.2 billion, pending finalization of design and development activities. The project is anticipated to be in service in 2030, subject to final commissioning. Chesapeake Utilities is evaluating options for financing the project and intends to partner with one or more third parties to invest in and own up to 49% of the total project.
Company cites growing energy demand across Florida
"Florida continues to lead the nation in population and economic growth, which drives increasing energy demand. In the south Florida area, this has led to significant energy supply constraints. Natural gas infrastructure expansions, including the Florida Energy Pathway project, play an important role in enabling regional growth, increasing natural gas capacity and supporting long-term energy independence," said Jeff Householder, Chesapeake Utilities chair of the board, president and chief executive officer.
"Florida Energy Pathway represents a long-term, regulated, organic growth opportunity and aligns strategically with our natural gas transportation expertise, above-average growth expectations and increased presence in south Florida following the acquisition of Florida City Gas. We are excited to bring this project online to serve our customers' needs and deliver energy that strengthens our local economies and communities."
Chesapeake Utilities will discuss this project in further detail and address its long-term capital investment expectations on its second quarter earnings call in August.
