Eastern Shore Natural Gas receives FERC approval to provide natural gas transportation service

Source: Chesapeake Utilities Corporation

ESNG will transport 45,000 dekatherms per day of natural gas to service Calpine's 309 MW electric generation plant.

Garrison Energy Center


Chesapeake Utilities Corporation 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 dekatherms per day ("dt/d") of natural gas to service Calpine's 309 MW electric generation plant.

"This project is an example of our ability to provide clean natural gas thereby generating long-term value for our customers, investors, employees and our communities," said Michael P. McMasters, Chesapeake Utilities Corporation President and Chief Executive Officer. "We are proud to be an integral part of providing access to natural gas, improving our environment and reducing energy costs."

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.

"This agreement with Calpine exemplifies our continued efforts to meet the energy needs of the region as demand for economic and environmentally friendly natural gas increases," said Steve Thompson, President of Eastern Shore Natural Gas. "Through our pipeline facilities, we're dedicated to transporting this domestic fuel source safely, reliably, and responsibly."

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.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Making DDoS Mitigation Part of Your Incident Response Plan: Critical Steps and Best Practices

Like a new virulent strain of flu, the impact of a distributed denial of service (DDoS) attack is...

The Multi-Tax Challenge of Managing Excise Tax and Sales Tax

To be able to accurately calculate multiple tax types, companies must be prepared to continually ...

Operational Analytics in the Power Industry

Cloud computing, smart grids, and other technologies are changing transmission and distribution. ...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Latest Energy Jobs

View more Job Listings >>

Archived Articles

PennEnergy Articles
2008 | 2009 | 2010 | 2011 | 2012 | 2013

OGJ Articles
2011 | 2012 | 2013

OGFJ Articles
2011 | 2012 | 2013

Power Engineering Articles
2011 | 2012 | 2013

Power Engineering Intl Articles
2011 | 2012 | 2013

Utility Products Articles
2011 | 2012 | 2013

HydroWorld Articles
2011 | 2012 | 2013

COSPP Articles
2011 | 2012 | 2013

ELP Articles
2011 | 2012 | 2013