Chesapeake Utilities Corporation Announces Capacity Expansion to Meet Growing Customer Demand along Coastal Delaware and Maryland

Rhea-AI Summary

Chesapeake Utilities Corporation (NYSE: CPK) announced a $6.3 million capital project to expand its infrastructure from Sussex County, Delaware, to northern Ocean City, Maryland. The initiative aims to enhance service reliability and meet increasing natural gas demand. A new pipeline will be constructed, following the completion of necessary permits, with construction expected to begin in Q2 and finish by Q4 2022. CEO Jeff Householder highlighted that customer growth within the Delmarva natural gas distribution areas is significantly above the national average.

Positive

• Investment of $6.3 million signifies commitment to infrastructure expansion and improved service reliability.
• Project addresses growing natural gas demand in Sussex County and Ocean City, enhancing customer service.
• Customer growth rates in Delmarva regions are 2-3 times higher than the national average, indicating robust demand.

Negative

• None.

Capital Investment of $6.3 Million

DOVER, Del., May 2, 2022 /PRNewswire/ -- Chesapeake Utilities Corporation (NYSE: CPK) announced today that it is in the final pre-construction stage associated with a $6.3 million capital project that would expand infrastructure to serve new customers from Sussex County, Delaware, to northern Ocean City, Maryland, while also increasing the reliability of the existing distribution system in those areas.

As part of the planned project, Chesapeake Utilities will construct a new pipeline to extend existing infrastructure through Fenwick Island, Delaware, to northern Ocean City to serve residences and businesses. In 2017, Sandpiper Energy, a wholly-owned subsidiary of the Company, completed conversion of the Ocean City gas system from propane to natural gas. Since that conversion, there continues to be increased demand for natural gas.

Pending receipt of the remaining permits, construction will begin in the second quarter, with estimated completion in the fourth quarter.

"Customer demand continues to support long-term growth for our Company, with customer growth in our Delmarva natural gas distribution service territories continuing at levels two to three times above the national average customer growth rate," said Jeff Householder, president and CEO. "We've met the energy needs of the Delmarva Peninsula for many years, and we'll continue to do so in a way that makes life better for the people and communities we serve there."

About Chesapeake Utilities Corporation
Chesapeake Utilities Corporation is a diversified energy delivery company, listed on the New York Stock Exchange. Chesapeake Utilities Corporation offers sustainable energy solutions through its natural gas transmission and distribution, electricity generation and distribution, propane gas distribution, mobile compressed natural gas utility services and solutions, and other businesses. For more information, visit www.chpk.com.

Please note that Chesapeake Utilities Corporation is not affiliated with Chesapeake Energy, an oil and natural gas exploration company headquartered in Oklahoma City, Oklahoma. 

For more information, contact:       

Brianna Patterson
Manager, Public Relations and Strategic Communications, Chesapeake Utilities Corporation
302-217-7050
bpatterson@chpk.com

View original content:https://www.prnewswire.com/news-releases/chesapeake-utilities-corporation-announces-capacity-expansion-to-meet-growing-customer-demand-along-coastal-delaware-and-maryland-301537629.html

SOURCE Chesapeake Utilities Corporation

FAQ

What is the purpose of Chesapeake Utilities' $6.3 million project?

The project aims to expand infrastructure to serve new customers and enhance reliability in Sussex County, Delaware, and northern Ocean City, Maryland.

When will construction for the Chesapeake Utilities project begin?

Construction is expected to begin in the second quarter of 2022.

How does the customer growth rate in Delmarva compare nationally?

Customer growth in Delmarva is reported to be 2-3 times above the national average.

What infrastructure will be built under the Chesapeake Utilities project?

A new pipeline will be constructed to extend existing infrastructure from Fenwick Island, Delaware, to northern Ocean City.

What is the timeline for the Chesapeake Utilities project completion?

The project is estimated to be completed by the fourth quarter of 2022.