Chesapeake Utilities Corp. subsidiary, Peninsula Pipeline Company Inc., has completed an 11.3-mile expansion that will bring additional natural gas capacity to the Vero Beach, Florida, area south of Orlando along the Atlantic Ocean.
Chesapeake is headquartered in Dover and operates electric, gas, and pipeline operations in Florida. Much of its Sunshine State operations are in northeastern Florida near Jacksonville with natural gas pipelines extending further into the state.
PPC partnered with another third-party utility, Florida City Gas on the project.
The project, which cost about $10.5 million, interconnects with existing peninsula infrastructure in Sebastian and extends to Vero Beach. The new facilities will transport natural gas to five new delivery points, extending service to Wabasso, Wabasso Beach, Indian River Shores, North Hutchison Island and Harbor Isles. The company expects this project to generate an additional annual adjusted gross margin of $1.8 million in 2023 and $2.5 million in the years thereafter.
“We operate in service territories where populations and customer demand for energy continue to grow. We remain committed to meeting this demand and providing safe, affordable and reliable natural gas service, including making additional infrastructure investments in these growing areas,” said Jeff Householder, CEO, Chesapeake Utilities
Construction began during the second quarter of 2022 and was completed on schedule and within budget.