The Del-Mar Energy Pathway project will include new infrastructure facilities will be built in Kent and Sussex counties in Delaware, and Wicomico and Somerset counties in Maryland
US-based energy company Chesapeake Utilities has received approval from the Federal Energy Regulatory Commission (FERC) for the construction of the Del-Mar Energy Pathway project.
Eastern Shore Natural Gas Company, a subsidiary of Chesapeake Utilities had applied for approval in September 2018.
The project will include new infrastructure facilities that will be built in Kent and Sussex counties in Delaware, and Wicomico and Somerset counties in Maryland.
According to the Regional Economic Studies Institute study, the project is expected to provide direct employment to the people who are directly associated with the construction of the project.
According to Eastern Shore Natural Gas Company, the Del-Mar Energy Pathway project is required to deliver a total of 14,300 dt/d dekatherms of additional natural gas transportation service, as there is a growing market demand for economical and reliable energy with fewer emissions.
The Del-Mar Energy Pathway project will add 19.3km of natural gas infrastructure in Kent
Chesapeake Utilities natural gas transmission and regulated distribution senior vice president Jeff Sylvester said: “Bringing natural gas to a new area results in many positive enhancements for the community, both environmental and economic.
“Studies have shown that a project like this will create more job growth and expansion of services, particularly increased demand and additional local services.”
Del-Mar Energy Pathway Project is expected to add about 19.3km of natural gas infrastructure in Kent and Sussex counties and about 11.2km in Wicomico and Somerset counties.
Slated to begin construction in the first quarter of this year, the project expected to cost about $37m while the estimated annual gross margin would be is $5.1m.
Once operational, the project is expected to offer about 11.8 million cubic feet 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.
Construction of the project is expected to be completed in the fourth quarter of next year.
Chesapeake Utilities had received positive environmental assessment FERC for the project in May last year.