DOVER,
Del., Oct. 18, 2023 /PRNewswire/
-- Chesapeake Utilities Corporation (NYSE: CPK) today
announced that its subsidiary, Eastern Shore Natural Gas Company
(ESNG), plans to invest $80 million
in the Worcester Resiliency Upgrade project, a planned liquefied
natural gas storage facility in Bishopville, Maryland. The proposed peaking
storage facility will include five low-profile 100,000-gallon
horizontal storage tanks on a 135-acre parcel adjacent to an
existing industrial facility in Worcester
County. The project also includes additional infrastructure
in Sussex County, Delaware, and
Wicomico County, Maryland, as well
as upgrades to existing meter and regulator stations in
Sussex County, Delaware;
Worcester County, Maryland; and
Somerset County, Maryland. ESNG
will construct, own and operate all proposed facilities. The
project will enable ESNG to provide critical energy service to
customers during the peak winter heating season.
The $80 million capital investment
is a result of the increased capacity requirements of three
affiliated local distribution companies (LDCs), each of which will
enter into 30-year service agreements upon completion of the
project. The project also aligns with the Company's sustainability
strategy, focusing on the safety and sustainability of local
communities and the environment.
"Demand for natural gas continues to increase in our Delmarva
service territories, where our customer additions are above
national averages," said Jeff
Householder, chairman, president and chief executive
officer. "Strategic infrastructure investments like this one allow
us to enhance service for our existing customers, meet growing
demand and support future growth opportunities in our expanding
areas of operation. We believe we are well positioned to serve
existing and future customers."
"Chesapeake Utilities Corporation continues to expand its
operations to meet the growing demand for natural gas. While doing
so, the Company is committed to meeting and surpassing the
expectations of its stakeholders, including investors," said
Beth Cooper, executive vice
president, chief financial officer, treasurer and assistant
corporate secretary. "This project supports our recent capital
guidance increase, which builds on our long track record of
identifying and executing on strategic growth initiatives that
drive future earnings growth."
The Worcester Resiliency Upgrade will enhance the natural gas
supply system on the lower eastern shore of Maryland and in southern Delaware. The project will provide an
alternative supply source and enhance the system's flexibility
during critical peak months, reducing the risk of supply
interruption and improving reliability. These improvements will
help protect customers from weather-related disruptions, keeping
energy prices affordable.
Over the past several years, the Company has executed
significant projects to meet continuing customer growth and demand
for energy in underserved regions on the Delmarva Peninsula,
including infrastructure expansion on the lower eastern shore of
Maryland and in southern
Delaware. These projects have
facilitated the availability of natural gas in Somerset County, one of three counties in
Maryland previously without access
to natural gas. As a result, two large energy consumers were able
to transition from less sustainable heating sources to natural gas,
improving their environmental emissions profiles. Most recently, to
meet the ongoing demand, ESNG completed its Southern Expansion
project, which included the addition of another natural gas-fired
compressor unit in Sussex County
at its Bridgeville, Delaware,
compressor facility.
An application for the Worcester Resiliency Upgrade was filed
with the Federal Energy Regulatory Commission in Docket No.
CP23-536-000. The project is expected to be operational before the
winter heating season of 2025, pending receipt of regulatory
approvals.
For more information, visit WorcesterResiliencyUpgrade.com.
About Eastern Shore Natural Gas Company (ESNG)
Eastern
Shore Natural Gas Company owns and operates a 516-mile Federal
Energy Regulatory Commission (FERC) regulated interstate
transmission pipeline system that transports natural gas from four
upstream pipeline interconnection points in Pennsylvania and Delaware to customers along the Delmarva
Peninsula, including Chesapeake Utilities' distribution systems.
For more information, visit www.esng.com.
About Chesapeake Utilities
Corporation
Chesapeake Utilities Corporation is a
diversified energy delivery company, listed on the New York Stock
Exchange. Chesapeake Utilities Corporation offers sustainable
energy solutions through its natural gas transmission and
distribution, electricity generation and distribution, propane gas
distribution, mobile compressed natural gas utility services and
solutions and other businesses. For more information,
visit www.chpk.com.
Please note that Chesapeake Utilities Corporation is not
affiliated with Chesapeake Energy, an oil and natural gas
exploration company headquartered in Oklahoma City, Oklahoma.
For more information, contact:
Investors
Beth W.
Cooper, Chesapeake Utilities Corporation
Executive Vice President, Chief Financial Officer, Treasurer and
Assistant Corporate Secretary
302-734-6022
Michael Galtman, Chesapeake
Utilities Corporation
Senior Vice President and Chief Accounting Officer
302-217-7036
Media
Brianna
Patterson, Chesapeake Utilities Corporation
Manager, Public Relations and Strategic Communications
419-314-1233
bpatterson@chpk.com
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SOURCE Chesapeake Utilities Corporation