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DOVER, Del., Oct. 3, 2003 -- Eastern Shore Natural Gas Company (ESNG), a subsidiary of Chesapeake Utilities Corp. received approval on October 1, 2003 from the Federal Energy Regulatory Commission (FERC) for an $8.5 million expansion of its natural gas pipeline, "which is another step forward in a series of expansion plans to meet natural gas needs on the Delmarva Peninsula," said Stephen C. Thompson, ESNG's President.
The project consists of constructing and operating mainline looping, upgrading a measuring and regulating station, and constructing and operating a new pressure control station. The project will add additional peak day capacity of 15,100 dekatherms (which equals the quantity of natural gas consumed by about 15,000 households on a peak winter day) to the pipeline's existing peak day capacity of 110,183 dekatherms.
"The incremental capacity created by the proposed facilities will serve residential and commercial customer growth in Delaware, Maryland and Pennsylvania," Thompson said. "Obviously we are pleased with the approval," he added. "The expansion program is a result of customer requests for additional firm transportation service capacity that ESNG received during its recent Open Season." Since 1998, ESNG has invested $29.8 million in its system, increasing capacity by 93 percent.
"Open Season is ESNG's opportunity to gauge growth potential by requesting its existing customers to project their future energy needs, as well as seeking out new customers," Thompson said. "The Open Season was designed to partner with customers to develop a three-year growth plan to achieve expansion efficiencies, and to minimize environmental impact," he added.
The construction project will commence in the near future, and will be phased in over the next three years. The location of Phase I and II is in Chester County, PA, and Phase III is in New Castle County, DE. "This three- year project will allow us to accommodate the growth on the Peninsula," Thompson said. "As demand for natural gas continues to grow in Delaware and Maryland, ESNG is committed to expand the pipeline to meet that need," he added.
Most recently, ESNG expanded its pipeline capacity by slightly more than four percent in 2002, which provided an additional 4,500 dekatherms of new capacity, equal to the quantity of natural gas consumed by about 4,500 households on a peak winter day. Prior to that, ESNG expanded its pipeline capacity by 23 percent in 2001, providing an additional 19,800 dekatherms of new capacity, which equals the quantity of natural gas consumed by about 20,000 households on a peak winter day. This project expanded natural gas service to the City of Milford, affording a new energy alternative for industrial and commercial customers, as well as the residential community. Natural gas is an energy source that can be used to cook food, heat water, dry clothes, heat homes and businesses, and for outdoor lighting.
ESNG's pipeline transports natural gas from southeastern Pennsylvania to points in Pennsylvania, Maryland and Delaware for various industrial facilities, electric generating plants and local distribution company customers. ESNG operates the only interstate pipeline in Delaware. At present, the natural gas pipeline extends through Delaware to Salisbury, Easton and Cambridge, MD.
Chesapeake Utilities Corporation is a diversified utility company engaged in natural gas distribution and transmission, propane distribution and marketing, advanced information services and other related businesses. Information about Chesapeake Utilities Corporation and the Chesapeake family of businesses is available online at www.chpk.com.
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