Chesapeake Utilities Corporation, Dover, announced its Florida subsidiary, Peninsula Pipeline Company, Inc., entered into an agreement with SeaCoast Gas Transmission, an affiliate of Tampa-based TECO Peoples Gas to jointly develop the Callahan Intrastate Pipeline.
The $67 million piwould bring bring additional natural gas capacity to Nassau and Duval Counties. The new supply source will enable both Florida Public Utilities Company, another Chesapeake Utilities subsidiary, and Peoples to expand natural gas distribution service in this growing area of Florida. The utilities previously worked together in 2012 to introduce natural gas service to Nassau County.
“We are delighted to work with TECO Peoples Gas to jointly increase the availability of natural gas in Nassau and Duval Counties. Expanding access to safe, reliable and clean natural gas plays an important role in the continuing economic development of the northeast Florida region,” said Jeff Householder, CEO of Chesapeake Utilities Corp. “Working together we avoid the cost of duplicative pipeline facilities.
The Callahan Intrastate Pipeline facilities include a 26.5-mile-long joint natural gas pipeline that will originate from a gate station to be constructed on the Southern Natural Gas Cypress Interstate Pipeline near Crawford Road in Callahan, Fl to Radio Avenue and Highway 17 in Yulee, FL. Peninsula Pipeline will construct, partially own and fully maintain the pipeline.
“The project will increase Chesapeake’s footprint in underserved communities in Northeast Florida while providing additional capacity to serve industrial and commercial growth in Nassau County,” said Kevin Webber, president of the company’s Florida business unit, which includes Florida Public Utilities. Chesapeake Utilities Corporation has a long-standing history in Florida, beginning with the acquisition of Central Florida Gas Company in 1985, followed by the acquisition of Florida Public Utilities in 2009.
The estimated cost of the pipeline is $65 million, to be split between both companies. Construction is set to begin next month with a target operating date of September 2020. The pipeline is subject to regulatory approvals.
Information about Chesapeake Utilities Corporation’s businesses is available at www.chpk.com or through the Company’s Investor Relations App.