Chesapeake Utilities Corporation (NYSE: CPK) announced today that the Federal Energy Regulatory Commission (FERC) has issued a positive environmental assessment of the Company's Del-Mar Energy Pathway Project.


Image: Pipeline system. Photo: courtesy of supakitmod/

The Project, which was applied for in September of 2018 by Eastern Shore Natural Gas Company (ESNG), Chesapeake Utilities’ interstate natural gas transmission subsidiary, proposes the construction and operation of new natural gas pipeline and meter and delivery (M&R) stations in Kent and Sussex counties in Delaware, and Wicomico and Somerset counties in Maryland.

“We have continued to meet the growing market demand for natural gas in the region by expanding our transmission pipeline capacity in recent years,” said Jeff Tietbohl, Vice President of Eastern Shore Natural Gas Company. “This project will play a significant role in providing clean, reliable and cost-effective natural gas to underserved areas on the Delmarva Peninsula.”

The FERC staff concluded that the proposed Project, with appropriate mitigating measures, would not significantly impact the environment. The Project proposes to add approximately 12 miles of natural gas pipeline in Kent and Sussex counties and nearly seven miles of pipeline in Wicomicoand Somerset counties. FERC certificate authorization is anticipated by the end of the second or third quarter of 2019 and construction of the Del-Mar Energy Pathway Project is expected to commence later this year.

The construction and operation of the new natural gas pipeline and related facilities 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 projected cost of the project is approximately $37 million. The anticipated annual gross margin for the Del-Mar Energy Pathway Project is $5.1 million.

Source: Company Press Release