Chesapeake Utilities Corp. affiliate Peninsula Pipeline Co. and SeaCoast Gas Transmission affiliate TECO Peoples Gas (PGS) plan to jointly develop a pipeline to bring additional natural gas capacity to the Jacksonville area of northeastern Florida, the companies said Wednesday.

The Callahan Intrastate Pipeline project would include a 26.5-mile pipe in Florida that would run from a gate station to be built on the Southern Natural Gas Cypress Interstate Pipeline in Callahan to Yulee. The pipeline would be built, partially owned and maintained by Peninsula Pipeline. 

The pipeline would enable PGS and a second Chesapeake Utilities subsidiary, Florida Public Utilities Co. (FPU), to expand natural gas distribution service in Florida’s Nassau and Duval counties. 

Construction of the project, which has an estimated cost of $65 million, is scheduled to begin next month, with a target in-service date of September 2020. FPU and PGS said they will seek necessary Florida Public Service Commission approvals for the additional pipeline capacity and increased distribution capabilities.

FPU and PGS previously worked together to introduce natural gas service to Nassau County in 2012.