Chesapeake Utilities Corporation has announced plans to develop the Florida Energy Pathway (FEP), a proposed $1.2 billion intrastate natural gas pipeline designed to relieve supply constraints and improve energy reliability in South Florida.
The project will be developed, constructed, and operated by the company’s subsidiary, Peninsula Pipeline Company (PPC). The planned 24-inch pipeline will run from Palm Beach County to Miami-Dade County, expanding natural gas transportation capacity for residential, commercial, and industrial customers in one of the fastest-growing regions in the United States.
The pipeline is backed by firm transportation commitments totaling nearly 250,000 dekatherms per day from multiple investment-grade shippers. Supply into the system will come from Florida Gas Transmission’s planned Phase IX expansion, while PPC continues to solicit additional binding transportation commitments.
The company expects the pipeline to enter service in 2030, subject to regulatory approvals and final commissioning. Chesapeake Utilities said it is evaluating financing options and intends to bring in one or more partners to own up to 49% of the project.
The announcement marks one of Chesapeake Utilities’ largest organic growth investments and builds on its expanding footprint in Florida following its acquisition of Florida City Gas. The company said the project is intended to address mounting energy demand driven by Florida’s continued population and economic growth while supporting long-term system reliability.
Natural gas remains the dominant fuel for electricity generation in Florida, and utilities have continued investing in pipeline infrastructure to support rising demand and reinforce supply security as the state’s population expands. The Florida Energy Pathway would complement existing interstate infrastructure by increasing intrastate transportation capacity into the heavily populated South Florida market.
Chesapeake Utilities said it expects to provide additional details on the project and its long-term capital investment plans during its second-quarter earnings call in August.
By Charles Kennedy for Oilprice.com
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