Chesapeake Utilities Corp. announced that the Federal Energy Regulatory Commission (FERC) approved on July 21 the application by Eastern Shore Natural Gas (ESNG), Chesapeake Utilities’ interstate natural gas transmission subsidiary, to expand firm natural gas transportation service to Calpine Energy Services’ Garrison Energy Center in Dover, Delaware. ESNG will transport 45,000 Dth/d of natural gas to service Calpine’s 309 MW electric generation plant.
The transportation service will be provided under ESNG’s Off Peak ≤90 Firm Transportation (“OPT”) Rate Schedule. The OPT is a firm service that was designed to provide customers with an additional service offering that better matched the specific load requirements of the customer. Calpine’s Garrison Energy Center has dual fuel capability to help mitigate the effects of any potential gas interruption.
ESNG plans to expand its facilities with the installation of 5.4 miles of 16-inch pipeline looping and 3,550 horsepower of new compression in Delaware. These new facilities are estimated to cost approximately $38 million. ESNG estimates that it will generate at least $5.8 million of revenue annually from providing the OPT service to Calpine. Since Calpine’s electric generation plant initiated operations in the second quarter of 2015, ESNG has been providing Calpine with a limited mix of short-term service solutions until the facilities associated with this project are completed.
Completion of the facilities are anticipated during the first quarter of 2017.