Chesapeake Utilities’ Peninsula Pipeline Company Receives Approval for New Infrastructure to Support 3 RNG Projects in Florida
July 18, 2024
Chesapeake Utilities Corporation’s subsidiary, Peninsula Pipeline Company (PPC), has received approval from the Florida Public Service Commission for three projects expanding natural gas infrastructure to benefit customers of another subsidiary, Florida City Gas (FCG).
The projects, located in Florida's Brevard, Indian River, and Miami-Dade counties, have a combined capital investment of $46 million and are expected to be completed in H1 2025.
The projects will bring renewable natural gas produced from local landfills into FCG's natural gas distribution system. They will enable increased gas supply to serve expected FCG growth, strengthen system reliability, and provide additional system flexibility.
"These projects use methane that would otherwise escape into the environment and allow this renewable, locally sourced gas to be transported into our system for the beneficial use of our customers," said Kevin Webber, Senior Vice President and Chief Development Officer. "They highlight our ability to meet customer demand by leveraging our transmission and distribution systems to safely and reliably deliver renewable natural gas into growing markets."
The Brevard County project will support FCG's system with an alternative gas source, bringing an additional supply of 3,200 Dth/day into the FCG distribution system upon completion. It will also create flow design enhancements, allowing FCG's system to meet expected new demand growth in the county.
The project will consist of approximately five miles of transmission infrastructure and require a total capital investment of approximately $6 million.
Once completed, the Indian River County project will enable the interconnection of three existing transmission systems. The new facilities will result in 3,200 Dth/day of additional supply into the FCG distribution system, providing resiliency to customers. They consist of approximately 14 miles of new transmission infrastructure, a district regulator station, a tie-in with FCG's distribution system, and an interconnect with existing PPC facilities. The total capital spent on the project will be approximately $18 million.
The Miami-Dade County project will bring an additional 6,700 Dth/day of capacity to the area through approximately eight miles of transmission infrastructure and a district regulator station tied in with FCG's distribution system. The project will support the need for additional supply in this area of South Florida while also reinforcing FCG's system with locally sourced renewable natural gas. The total capital spent on the project will be approximately $22 million.
Moreover, the Florida Public Service Commission has approved the transfer of the Pioneer Supply Pipeline asset from FCG to PPC, which allows Chesapeake Utilities to better align its assets and services within its relevant subsidiaries.
Pioneer Supply will continue to serve FCG and Florida Public Utilities (FPU) through two existing contracts and add two delivery offtakes to serve additional gas supply requirements for FPU.
