Chesapeake Utilities Corporation Receives FERC Approval to Construct Additional Compression Facilities in Sussex County, Delaware

Rhea-AI Summary

Chesapeake Utilities Corporation (NYSE: CPK) announced on January 23, 2023 that its subsidiary, Eastern Shore Natural Gas (ESNG), received approval from the Federal Energy Regulatory Commission (FERC) to construct a new compressor unit in Sussex County, Delaware. This facility aims to support the growing demand for natural gas across the Delmarva Peninsula, increasing capacity by up to 7,300 dekatherms per day. Since 2017, ESNG has invested over $200 million in infrastructure improvements, enhancing service availability for residential and commercial customers.

Positive

• FERC approval for new compressor unit enhances infrastructure capacity.
• Investment of over $200 million since 2017 to support population growth.
• Increased capacity by up to 7,300 dekatherms per day to meet demand.

Negative

• None.

News Market Reaction

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-0.34% News Effect

On the day this news was published, CPK declined 0.34%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

New Infrastructure Supports Peak Service Demands on Delmarva Peninsula

DOVER, Del., Jan. 23, 2023 /PRNewswire/ -- Chesapeake Utilities Corporation (NYSE: CPK) announced today that its subsidiary, Eastern Shore Natural Gas (ESNG), has received approval from the Federal Energy Regulatory Commission (FERC) to construct a new compressor unit at its existing facility in Sussex County, Delaware. The new compressor and associated infrastructure support growing residential, commercial and industrial demand along the Delmarva Peninsula, and provide incremental capacity needed in the coldest winter months.

Since 2017, ESNG has made more than $200 million of infrastructure investments to support the significant population growth across the Delmarva Peninsula, and in 2021, ESNG extended its system to Somerset County, Maryland, one of only three counties in the state previously without access to natural gas service. With this compression facility, ESNG can meet peak service demand with up to an additional 7,300 dekatherms per day (Dth/d) of transportation service, supporting the southernmost section of its system.

"Chesapeake Utilities is committed to supporting its growing customer base by investing in the infrastructure needed to meet the needs of the communities we serve," said Jeff Householder, president and CEO. "Natural gas continues to be the energy choice of our customers and we're proud to be a trusted partner in our service territories."

About Eastern Shore Natural Gas Company

Eastern Shore Natural Gas Company, a subsidiary of Chesapeake Utilities Corporation (NYSE: CPK), 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:

Brianna Patterson
Manager, Public Relations and Strategic Communications
419-314-1233
bpatterson@chpk.com

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SOURCE Chesapeake Utilities Corporation

FAQ

What new infrastructure did Chesapeake Utilities Corporation announce on January 23, 2023?

Chesapeake Utilities Corporation announced the approval to construct a new compressor unit by its subsidiary, Eastern Shore Natural Gas, in Sussex County, Delaware.

How will the new compressor unit impact natural gas service on the Delmarva Peninsula?

The new compressor unit will increase the capacity by 7,300 dekatherms per day, supporting growing residential, commercial, and industrial demand.

How much has Eastern Shore Natural Gas invested in infrastructure improvements since 2017?

Eastern Shore Natural Gas has invested over $200 million in infrastructure improvements since 2017.

What is the significance of the FERC approval for Chesapeake Utilities Corporation?

The FERC approval allows Chesapeake Utilities Corporation to expand its capacity to meet peak service demands during the coldest winter months.