Chesapeake buys Ocean City-area propane utility


Units of Dover-based Chesapeake Utilities Corp. announced the purchase of assets of Eastern Shore Gas Co., a provider of propane service in the Ocean City, Md. area.

Chesapeake will determine whether portions of the propane system can be converted to natural gas. In the interim, the company says its service should save the community more than $1 million.

A Chesapeake subsidiary, Eastern Shore Natural Gas late last year expanded its pipeline to Worcester County, Md.

Eastern Shore provides propane to about 11,000 residential and commercial customers. It uses a central system that distributes propane in a manner similar to natural gas systems.

Chesapeake is also expanding its natural gas system in Sussex County, Del.

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