Published by Todd Bush on October 19, 2023
DOVER, Del., Oct. 19, 2023 /PRNewswire/ -- Chesapeake Utilities Corporation (NYSE: CPK) today announced that its subsidiary, Eastern Shore Natural Gas Company (ESNG), plans to invest $80 million in the Worcester Resiliency Upgrade project, a planned liquefied natural gas storage facility in Bishopville, Maryland. The proposed peaking storage facility will include five low-profile 100,000-gallon horizontal storage tanks on a 135-acre parcel adjacent to an existing industrial facility in Worcester County. The project also includes additional infrastructure in Sussex County, Delaware, and Wicomico County, Maryland, as well as upgrades to existing meter and regulator stations in Sussex County, Delaware; Worcester County, Maryland; and Somerset County, Maryland. ESNG will construct, own and operate all proposed facilities. The project will enable ESNG to provide critical energy service to customers during the peak winter heating season.
The $80 million capital investment is a result of the increased capacity requirements of three affiliated local distribution companies (LDCs), each of which will enter into 30-year service agreements upon completion of the project. The project also aligns with the Company's sustainability strategy, focusing on the safety and sustainability of local communities and the environment.
"Demand for natural gas continues to increase in our Delmarva service territories, where our customer additions are above national averages," said Jeff Householder, chairman, president and chief executive officer. "Strategic infrastructure investments like this one allow us to enhance service for our existing customers, meet growing demand and support future growth opportunities in our expanding areas of operation. We believe we are well positioned to serve existing and future customers."
"Chesapeake Utilities Corporation continues to expand its operations to meet the growing demand for natural gas. While doing so, the Company is committed to meeting and surpassing the expectations of its stakeholders, including investors," said Beth Cooper, executive vice president, chief financial officer, treasurer and assistant corporate secretary. "This project supports our recent capital guidance increase, which builds on our long track record of identifying and executing on strategic growth initiatives that drive future earnings growth."
The Worcester Resiliency Upgrade will enhance the natural gas supply system on the lower eastern shore of Maryland and in southern Delaware. The project will provide an alternative supply source and enhance the system's flexibility during critical peak months, reducing the risk of supply interruption and improving reliability. These improvements will help protect customers from weather-related disruptions, keeping energy prices affordable.
Over the past several years, the Company has executed significant projects to meet continuing customer growth and demand for energy in underserved regions on the Delmarva Peninsula, including infrastructure expansion on the lower eastern shore of Maryland and in southern Delaware. These projects have facilitated the availability of natural gas in Somerset County, one of three counties in Maryland previously without access to natural gas. As a result, two large energy consumers were able to transition from less sustainable heating sources to natural gas, improving their environmental emissions profiles. Most recently, to meet the ongoing demand, ESNG completed its Southern Expansion project, which included the addition of another natural gas-fired compressor unit in Sussex County at its Bridgeville, Delaware, compressor facility.
An application for the Worcester Resiliency Upgrade was filed with the Federal Energy Regulatory Commission in Docket No. CP23-536-000. The project is expected to be operational before the winter heating season of 2025, pending receipt of regulatory approvals.
For more information, visit WorcesterResiliencyUpgrade.com.
Eastern Shore Natural Gas Company 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.
>> In Company Spotlight: Chesapeake Energy
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.
SOURCE Chesapeake Utilities Corporation
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside This Issue 🛢️ Exxon's Gas Strike, EPA Smackdown, and Carbon Curveball 🏭 MHI Awarded Contract for Basic Design of Japan's Largest CO₂ Capture Plant at Hokkaido Electric Power's Tomato-Atsuma...
Inside This Issue 🌊 The Quiet Rise of Offshore CO2 Storage: North America's Emerging Frontier for Carbon Capture 🍁 Canada Invests in Carbon Capture and Storage in Alberta 🛰️ Vortex Energy Finalize...
Inside This Issue ⚖️ CDR at a Crossroads: Is Private Sector Innovation Enough to Offset Washington's Wobble? 🌱 Exomad Green’s Biochar Field Study Reveals Significant Crop Yield Improvements In Bol...
Paris, France - Natural State Renewables, a future leader in carbon-negative sustainable aviation fuel (SAF) production, is thrilled to announce its strategic partnership with Axens, a global leade...
Energy Startup Arbor Notches $41M Deals Amid Trump Reversals
Arbor, a startup that promises both CO2 removal and clean baseload power, just announced $41 million in offtake deals as it courts hyperscalers' growing energy needs. Why it matters: The contracts...
Microsoft Buys 2.95m Tons of Carbon Removal Credits From CCS Project in Denmark
Credits generated by project Gaia, an EfW joint venture between CIP and Vestforbrænding Microsoft has signed a carbon removal agreement with Gaia, a joint venture between Copenhagen Infrastructure...
Milan - Tulum Energy, a pioneering methane pyrolysis startup, has successfully closed a $27 million venture financing round. This significant investment, led by CDP Venture Capital, through its Gre...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.