Chesapeake Utilities sells minority stake in Florida Energy Pathway project to NextEra
Chesapeake Utilities Corporation has sold a minority stake in its Florida Energy Pathway (FEP) natural gas infrastructure project to NextEra Energy Resources, marking a significant move in the company's strategic development plans. The agreement, effective as of September 1, 2026, sees NextEra Energy Resources acquiring a 49% ownership interest, while Chesapeake Utilities retains a 51% stake in the project.
Florida Energy Pathway is a 24-inch intrastate natural gas infrastructure project that is set to extend from Palm Beach County to Miami-Dade County. The project is designed to boost natural gas transportation capacity, address regional supply constraints, meet growing customer demand, and enhance energy reliability in one of the nation's fastest-growing regions. The estimated total project investment is approximately $1.2 billion, pending finalization of design and development activities.
Chesapeake Utilities' President and CEO, Jeff Householder, expressed confidence in the project's future, stating, "Since announcing the project in July, we have received strong interest from potential partners, reinforcing the value of this regulated infrastructure opportunity. This partnership strengthens our ability to advance a transformational infrastructure project alongside our robust capital growth plan to drive long-term value creation for our customers, communities, and shareholders."
The project's development is expected to proceed smoothly, with ongoing engineering, environmental studies, and stakeholder engagement. Construction is anticipated to begin in the first half of 2028, with the project scheduled to be in service by 2030, subject to final commissioning. Chesapeake Utilities' subsidiary, Peninsula Pipeline Company, Inc., will continue to manage and operate the project.
Chesapeake Utilities Corporation is a diversified energy delivery company with a presence on the New York Stock Exchange. The company provides sustainable energy solutions through its natural gas transmission and distribution, electricity generation and distribution, propane gas distribution, mobile compressed natural gas utility services and solutions, and other businesses.
The sale of the minority interest is part of Chesapeake Utilities' broader strategy to enhance its infrastructure and support the growing energy demands of South Florida. Householder further emphasized, "This partnership with NextEra Energy Resources is a testament to our commitment to developing essential infrastructure that meets the needs of our communities."