Chesapeake Utilities Plans $1.2B South Florida Pipe – Ohio Angle

Chesapeake Utilities Corporation (NYSE: CPK) and its subsidiary Peninsula Pipeline Company (PPC) announced on July 13 a new intrastate natural gas pipeline project in South Florida called the Florida Energy Pathway, or FEP. The line will be 24 inches in diameter, running from Palm Beach County to Miami-Dade County. It's already anchored by firm commitments of nearly 250,000 dekatherms per day from multiple investment-grade shippers. (A dekatherm, or Dth, is a heat measurement roughly equal to a thousand cubic feet of natural gas — so think of it as about 250 MMcf/d, or 250 million cubic feet per day.) Upstream supply will come courtesy of Florida Gas Transmission's Phase IX expansion. The price tag is around $1.2 billion, with an in-service date of 2030. Chesapeake plans to sell off up to 49% of the project to one or more partners. CEO Jeff Householder pinned the need on Florida's booming population, its growing economy, and "significant energy supply constraints" in the south Florida market.

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