Chesapeake Utilities Sells Minority Stake in $1.2B Gas Pipeline Project

By Ahmed Jamerson • Tuesday, September 01 10:50 • Permanent Link

Chesapeake Utilities has sold a 49% minority interest in its Florida Energy Pathway natural gas infrastructure project to NextEra Energy Resources, leaving its indirect subsidiary Peninsula Pipeline Holdings with a 51% stake.

The project, which is planned as a 24-inch intrastate natural gas pipeline running from Palm Beach County to Miami-Dade County, is now carrying an estimated total investment of about $1.2 billion, pending final design and development work.

Chesapeake said the project is intended to expand transportation capacity, ease regional supply constraints, support growing customer demand, and improve reliability in South Florida. The company’s pipeline subsidiary, Peninsula Pipeline Company, will continue to construct, manage and operate the project under the joint venture.

Development work is still underway, including engineering, environmental studies and stakeholder engagement. Construction is expected to begin in the first half of 2028, with in-service targeted for 2030, subject to final commissioning. Today the company's shares have moved -0.7% to a price of $132.60. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.