Eastern Shore Natural Gas Receives FERC Approval to Expand Firm Natural Gas Transportation Service

The Federal Energy Regulatory Commission has approved Eastern Shore Natural Gas’ application to expand firm natural gas transportation service to Calpine Energy Services’ Garrison Energy Center in Dover, Delaware. When completed, Eastern Shore Natural Gas will transport 45,000 dekatherms per day of natural gas to service Calpine’s 309 MW electric generation plant.

The transportation service will be provided under Eastern Shore Natural Gas’ Off Peak ≤90 Firm Transportation Rate (OPT) Schedule. The OPT is a firm service that was designed to provide customers with an additional service offering that better matched the specific load requirements of the customer. Calpine’s Garrison Energy Center has dual fuel capability to help mitigate the effects of any potential gas interruption.

“This agreement with Calpine exemplifies our continued efforts to meet the energy needs of the region as demand for economic and environmentally friendly natural gas increases,” said Steve Thompson, President of Eastern Shore Natural Gas. “Through our pipeline facilities, we’re dedicated to transporting this domestic fuel source safely, reliably, and responsibly.”

Eastern Shore Natural Gas also plans to expand its facilities with the installation of 5.4 miles of 16-inch pipeline looping and 3,550 horsepower of new compression in Delaware. These new facilities are estimated to cost approximately $38 million. The company estimates that it will generate at least $5.8 million of revenue annually from providing the OPT service to Calpine.  Since Calpine’s electric generation plant initiated operations in the second quarter of 2015, Eastern Shore Natural Gas has been providing Calpine with a limited mix of short-term service solutions until the facilities associated with this project are completed.

Completion of the facilities are anticipated during the first quarter of 2017.

Eastern Shore Natural Gas is an interstate natural gas transmission subsidiary of Chesapeake Utilities.

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