$1.2 Billion South Florida Pipeline Aims to Expand Gas Capacity
Chesapeake Utilities plans to build the $1.2 billion Florida Energy Pathway, a 24-inch intrastate natural gas pipeline linking Palm Beach and Miami-Dade counties.
(P&GJ) — Chesapeake Utilities Corp. and subsidiary Peninsula Pipeline Co. (PPC) have announced the Florida Energy Pathway, a proposed $1.2 billion intrastate natural gas pipeline that will expand transportation capacity across South Florida and support growing energy demand.
The project calls for construction of a 24-inch pipeline extending from Palm Beach County to Miami-Dade County. Chesapeake said the line has secured nearly 250,000 dekatherms per day (Dth/d) of firm transportation commitments from multiple investment-grade shippers, with upstream capacity supplied through Florida Gas Transmission's Phase IX expansion.
PPC is continuing to market additional firm transportation capacity while advancing project development.
The pipeline is expected to enter service in 2030, pending regulatory approvals, final engineering and commissioning.
Chesapeake estimates the project will require approximately $1.2 billion in capital investment and said it intends to partner with one or more third-party investors that could own up to 49% of the project.
Chesapeake Utilities Chairman, President and Chief Executive Officer Jeff Householder said population and economic growth continue to increase natural gas demand across South Florida.
"Florida continues to lead the nation in population and economic growth, which drives increasing energy demand," Householder said. "Natural gas infrastructure expansions, including the Florida Energy Pathway project, play an important role in enabling regional growth, increasing natural gas capacity and supporting long-term energy independence."
Householder said the project also aligns with the company's long-term regulated growth strategy following its acquisition of Florida City Gas.
"Florida Energy Pathway represents a long-term, regulated, organic growth opportunity and aligns strategically with our natural gas transportation expertise," he said.
The company expects to provide additional details on the project and its long-term capital investment plans during its second-quarter earnings call in August.