Chesapeake Utilities and subsidiary Peninsula Pipeline Co. have announced the Florida Energy Pathway, a proposed $1.2 billion intrastate natural gas pipeline linking Palm Beach and Miami-Dade counties. The 24-inch line has already locked in nearly 250,000 dekatherms per day of firm commitments and targets a 2030 start.
Chesapeake Utilities Corp. and its subsidiary Peninsula Pipeline Co. plan to build the Florida Energy Pathway, a $1.2 billion intrastate natural gas pipeline that will expand transportation capacity across South Florida. The company said the line will support growing energy demand across the region.
A 24-inch line from Palm Beach to Miami-Dade
The plan calls for a 24-inch pipeline running from Palm Beach County to Miami-Dade County. Chesapeake said the line has secured nearly 250,000 dekatherms per day of firm transportation commitments from multiple investment-grade shippers, with upstream capacity supplied through Florida Gas Transmission's Phase IX expansion. Peninsula Pipeline is still marketing additional firm capacity as it advances development.
The pipeline is expected to enter service in 2030, pending regulatory approvals, final engineering and commissioning. Chesapeake put the capital cost at approximately $1.2 billion and said it intends to bring in one or more third-party investors that could own up to 49% of the project.
Demand tied to Florida growth
Chief Executive Officer Jeff Householder linked the project to the state's expanding population and economy, which he said drives increasing energy demand. He also tied the pipeline to the company's long-term regulated growth strategy after its acquisition of Florida City Gas.
Chesapeake plans to share more detail on the project during its second-quarter earnings call in August. Traders who want to follow the market can read how to trade the commodity.
Source: Pipeline and Gas Journal
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