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Expansion to Serve Delmarva Peninsula Given Green Light

Eastern Shore Natural Gas (ESNG), a subsidiary of Chesapeake Utilities, received FERC approval for a $33.6 million, 36% increase (47,450 Dth/d) in its pipeline capacity in Delaware and Pennsylvania in 2006, 2007 and 2008. The project will add 55 miles of pipeline looping and two new delivery points.

ESNG said it expects the project to produce annualized revenue of $6.8 million when completed. It will serve customer growth and provides system-wide benefits for all of ESNG's customers, including enhanced reliability of the system, improved system management and flexibility, the company said. Construction is scheduled to begin in the next several weeks.

"This project allows us to continue meeting the growing natural gas transportation needs of our customers," said ESNG President Stephen C. Thompson. The pipeline system has been in service since 1959. Its first segment ran from Parkesburg, PA, to Salisbury, MD. "ESNG has continually expanded the pipeline's capacity, including a 55 percent increase during the past five years," Thompson said.

ESNG currently serves 12 industrial customers, three electric generation customers, four non-affiliated local distribution companies and two affiliated natural gas divisions. ESNG owns and operates 331 miles of pipeline on the Delmarva Peninsula.

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