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ESNG Earns FERC Approval to Build Pipeline and Compression Facilities in Delaware

Chesapeake Utilities Corporation announced today that the Federal Energy Regulatory Commission has approved plans by Eastern Shore Natural Gas, Chesapeake Utilities' interstate natural gas transmission subsidiary, to construct pipeline and compression facilities to preserve the reliability and flexibility of its interstate pipeline system. The project is estimated to cost approximately $36 million.

"The investment we are making in this project is part of our ongoing commitment to the reliability of our natural gas transmission infrastructure, benefiting energy consumers throughout our service territories," said Michael P. McMasters, President and Chief Executive Officer of Chesapeake Utilities Corporation.

The project will include 10.1 miles of pipeline, including 2.5 miles of 16-inch pipeline looping in New Castle County, Delaware and 7.6 miles of 16-inch pipeline looping in Kent County, Delaware and adding 1,775 horsepower of additional compression at ESNG's existing Bridgeville Compressor Station in Sussex County, Delaware. Completion of the facilities are anticipated by the end of the first quarter of 2017.

"Since the company's inception in 1955, ESNG has proven that reliable and safe service go hand-in-hand," said Steve Thompson, President of Eastern Shore Natural Gas. "Addressing changes in operating conditions, including the extreme weather conditions we experienced in the polar vortex during the winter of 2015, will contribute to the continued reliable and safe service that is at the center of our Company's mission."


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