Chesapeake Utilities Corporation (NYSE: CPK) and its subsidiary Peninsula Pipeline Company announced plans for a new intrastate natural gas pipeline in south Florida, called the Florida Energy Pathway, with an estimated total investment of approximately $1.2 billion.

The project is anticipated to be a 24-inch pipeline running from Palm Beach County to Miami-Dade County. Upstream capacity will be supplied by Florida Gas Transmission in conjunction with its Phase IX expansion. The company said the project has firm commitments totaling nearly 250,000 dekatherms per day from multiple investment-grade shippers.

The pipeline is expected to be in service in 2030, subject to final commissioning and pending finalization of design and development activities. Chesapeake Utilities said it intends to partner with one or more third parties to own up to 49% of the total project and is evaluating financing options.

Jeff Householder, chair of the board, president and chief executive officer of Chesapeake Utilities, cited energy supply constraints in south Florida as a driver for the project. "Natural gas infrastructure expansions, including the Florida Energy Pathway project, play an important role in enabling regional growth, increasing natural gas capacity and supporting long-term energy independence," he said.

Chesapeake Utilities said it will provide additional details on the project and its long-term capital investment expectations during its second-quarter earnings call in August.