A major Mid-Atlantic project will increase pipeline capacity
The recently announced 2017 Expansion Project is the single largest expansion in the history of Eastern Shore Natural Gas Co., and is expected to add significant firm transportation pipeline capacity to the Mid-Atlantic region.
Chesapeake Utilities Corp. announced in November that Eastern Shore, Chesapeake Utilities’ interstate natural gas transmission subsidiary, had finalized precedent agreements with customers for the project.
“Our company continues to invest in energy infrastructure throughout the Mid-Atlantic area. This project will increase the firm transportation deliverability to our region by approximately 25 percent, supporting economic growth in the region,” said Michael P. McMasters, Chesapeake Utilities Corp. president and CEO.
Precedent agreements have been signed by seven of Eastern Shore’s existing customers who have requested new firm transportation services. As a result of this expansion, this project will provide more than 60,000 dekatherms per day of additional firm natural transportation deliverability on the pipeline.
“While our proposed 2017 expansion project would be the single largest expansion in company history, Eastern Shore Natural Gas Co. has been committed to serving the energy needs of our pipeline customers in a safe and reliable manner for many years,” Vice President Jeff Tietbohl told American Gas. “Over the last decade, the company has invested nearly $200 million in capital and increased the capacity of the pipeline by approximately 80 percent.”
The 2017 Expansion Project consists of about 23 miles of pipeline looping in Pennsylvania, Maryland and Delaware; upgrades to existing metering facilities; installation of an additional 3,550 horsepower compressor unit at the existing Daleville Compressor Station in Chester County, Pennsylvania; and about 17 miles of new mainline extension and two new pressure control stations in Sussex County, Delaware. These new facilities are estimated to cost about $99 million.
Subject to the timing of Federal Energy Regulatory Commission approval, Eastern Shore intends to begin construction of the expansion in the second quarter of 2017 and place the facilities in service during the latter part of the fourth quarter of 2017.