Chesapeake Utilities Corp secures approval for three Florida RNG projects
New York-listed Chesapeake Utilities Corporation on July 16 announced that its subsidiary, Peninsula Pipeline Company (PPC), has received approval for its renewable natural gas (RNG) projects from the Florida Public Service Commission.
These three projects aim to expand natural gas infrastructure to benefit customers of Florida City Gas (FCG), another subsidiary of Chesapeake Utilities. Located in Brevard, Indian River, and Miami-Dade counties, the projects will introduce RNG produced from local landfills into FCG's natural gas distribution system.
The PPC projects will enhance gas supply to accommodate expected growth for FCG, improve system reliability, and offer additional flexibility, Chesapeake Utilities said. The total capital investment for the projects is $46mn, with completion estimated in the first half of 2025.
In Brevard County, the project will reinforce FCG's system with a new alternative gas source, providing an additional 3,200 dekatherms/day (Dth/day) to the FCG distribution system. This will involve approximately five miles of new transmission infrastructure, costing around $6mn.
The Indian River County project will achieve similar results by interconnecting three existing transmission systems, adding 3,200 Dth/day of supply to the FCG distribution system. This project will involve 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, with a total capital expenditure of approximately $18mn.
In Miami-Dade County, the third project will introduce an additional 6,700 Dth/day of capacity via approximately eight miles of new transmission infrastructure and a new district regulator station tied to FCG's distribution system. This project, costing about $22mn, will support the need for more supply in South Florida and reinforce FCG's system with locally-sourced RNG.
Additionally, the Florida Public Service Commission approved the transfer of the Pioneer Supply Pipeline asset from FCG to PPC. This alignment allows Chesapeake Utilities to better manage its assets and services within its subsidiaries. Pioneer Supply will continue servicing FCG and Florida Public Utilities (FPU) through existing contracts and will now add two new delivery offtakes to meet additional gas supply needs for FPU.
Last month, the company reported the first injections of RNG at its Radio Avenue injection point in Yulee, Florida, from its facility at Full Circle Dairy in Madison County. Chesapeake Utilities Corporation is not affiliated with Chesapeake Energy, an oil and natural gas exploration company headquartered in Oklahoma City.