Chesapeake Utilities’ subsidiary Eastern Shore Natural Gas (ESNG) has received approval from the Federal Energy Regulatory Commission (FERC) in the US to construct pipeline and compression facilities.
The project is estimated to cost approximately $36m and is expected to preserve the flexibility of the company’s interstate pipeline system.
Chesapeake Utilities president and CEO Michael McMasters said: "The investment we are making in this project is part of our ongoing commitment to the reliability of our natural gas transmission infrastructure, benefiting energy consumers throughout our service territories.”
As part of the project, 10.1 miles of pipeline will be added, including 2.5 miles of 16-inch pipeline looping in New Castle County, Delaware and 7.6 miles of 16-inch pipeline looping in Kent County, Delaware.
It will also see the addition of 1,775 horsepower of additional compression at ESNG's existing Bridgeville Compressor Station in Sussex County.
The facilities are expected to be completed by the end of next year's first quarter.
Eastern Shore Natural Gas president Steve Thompson said: "Since the company's inception in 1955, ESNG has proven that reliable and safe service go hand-in-hand.
"Addressing changes in operating conditions, including the extreme weather conditions we experienced in the polar vortex during the winter of 2015, will contribute to the continued reliable and safe service that is at the centre of our company's mission."
Eastern Shore Natural Gas owns and operates a 442-mile interstate pipeline that transports natural gas from various points in Pennsylvania to customers in Delaware, Maryland and Pennsylvania.
