Chesapeake Utilities said July 13 it plans to develop a new South Florida natural gas infrastructure project, the Florida Energy Pathway, with total investment estimated at about $1.2 billion.
The project is expected to be a 24-inch intrastate pipeline running from Palm Beach County to Miami-Dade County. Chesapeake said it has already secured firm commitments totaling nearly 250,000 dekatherms per day from multiple investment-grade shippers, and it is still taking additional binding commitments for firm transportation service.
The company said the pipeline would be supplied by Florida Gas Transmission through its Phase IX expansion. Chesapeake expects the project to enter service in 2030, pending final commissioning.
Chesapeake also said it is evaluating financing options and intends to bring in one or more third parties to own up to 49% of the project.
The company said the project is intended to expand transportation capacity, relieve regional supply constraints and extend natural gas infrastructure to homes and businesses in South Florida. Chesapeake plans to discuss the project further on its second-quarter earnings call in August. As a result of these announcements, the company's shares have moved 3.3% on the market, and are now trading at a price of $133.12. For more information, read the company's full 8-K submission here.
