Chesapeake Utilities Corporation Completes Construction of New Infrastructure to Meet Growing Energy Demand in Vero Beach, Florida

Rhea-AI Summary

Chesapeake Utilities Corporation (NYSE: CPK) has completed an 11.3-mile natural gas pipeline expansion in Vero Beach, Florida, through its subsidiary, Peninsula Pipeline Company Inc. The $10.5 million project enhances natural gas capacity by interconnecting existing infrastructure and adding five new delivery points, including Wabasso and Indian River Shores. Expected annual adjusted gross margin is estimated at $1.8 million in 2023 and $2.5 million in subsequent years. This expansion aligns with the growing demand for energy in the region. Construction began in Q2 2022 and was completed on schedule and within budget.

Positive

• Project enhances natural gas capacity in Vero Beach, Florida.
• Expected additional annual adjusted gross margin of $1.8 million in 2023 and $2.5 million thereafter.
• Completed construction on schedule and within budget.

Negative

• None.

DOVER, Del., April 13, 2023 /PRNewswire/ -- Chesapeake Utilities Corporation (NYSE: CPK) announced today that its subsidiary, Peninsula Pipeline Company Inc. (PPC), has completed an 11.3-mile expansion that will bring additional natural gas capacity to the Vero Beach, Florida, area. PPC partnered with another third-party utility, Florida City Gas (FCG), on the project.

The project, which cost approximately $10.5 million, interconnects with existing PPC infrastructure in Sebastian and extends to Vero Beach. The new facilities will transport natural gas to five new delivery points, extending service to the communities of Wabasso, Wabasso Beach, Indian River Shores, North Hutchinson Island and Harbor Isles. The Company expects this project to generate additional annual adjusted gross margin of $1.8 million in 2023 and $2.5 million in the years thereafter.

"We operate in service territories where populations and customer demand for energy continue to grow. We remain committed to meeting this demand and providing safe, affordable and reliable natural gas service including making additional infrastructure investments in these growing areas," said Jeff Householder, president and CEO, Chesapeake Utilities Corporation.

"With this expansion, FCG will continue working to provide safe and reliable natural gas service to the barrier island, including the Seaglass and the Strand communities which will receive gas this spring, followed by more communities this summer. Demand is high, and we're dedicated to helping meet the growing need, especially as we enter storm season," said Marc Seagrave, Florida City Gas senior director of business development.

Construction began during the second quarter of 2022 and was completed on schedule and within budget.

About Peninsula Pipeline Company
Peninsula Pipeline owns and operates several intrastate natural gas pipelines throughout seven counties in Florida. PPC provides transportation service that links interstate pipelines to local distribution systems, industrial customers and power generation facilities. PPC completed recent expansions in Northwest Florida and West Palm Beach, Florida.

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
302-217-7050
bpatterson@chpk.com

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SOURCE Chesapeake Utilities Corporation

FAQ

What is the recent expansion project by Chesapeake Utilities Corporation (CPK)?

Chesapeake Utilities Corporation recently completed an 11.3-mile natural gas pipeline expansion in Vero Beach, Florida.

How much did the Vero Beach expansion project cost for CPK?

The expansion project cost approximately $10.5 million.

What is the expected revenue impact of the expansion project for CPK?

The expansion is expected to generate an additional annual adjusted gross margin of $1.8 million in 2023 and $2.5 million in subsequent years.

When did construction for the Vero Beach project start and finish?

Construction for the project began in Q2 2022 and was completed on schedule.

What areas will benefit from the natural gas pipeline expansion by CPK?

The expansion will serve five new delivery points, including Wabasso, Wabasso Beach, and Indian River Shores.