Chesapeake Utilities Corp. has announced plans to build a $1.2 billion intrastate natural gas pipeline designed to ease supply constraints and bolster energy reliability in fast-growing South Florida.

The project, named the ‘Florida Energy Pathway,’ will feature a 24-inch pipeline stretching from Palm Beach County to Miami-Dade County, with Peninsula Pipeline Co., a subsidiary of Chesapeake Utilities, planned to develop, construct and operate the system.

Once completed, the line will expand natural gas transportation capacity for residential, commercial, and industrial customers across the region.

The project is expected to enter service in 2030, subject to regulatory approvals and final commissioning.

The pipeline is backed by firm transportation commitments totalling nearly 250,000 dekatherms per day from multiple investment-grade shippers.

Supply into the system will come from Florida Gas Transmission’s planned Phase IX expansion, while Peninsula Pipeline continues to solicit additional binding commitments.

To fund the massive infrastructure project, Chesapeake Utilities said it is evaluating financing options and intends to bring in one or more partners to own up to a 49% stake in the pipeline.

The announcement represents one of the largest organic growth investments in the history of Chesapeake Utilities. It builds on the company's growing footprint in the Sunshine State, which recently expanded with its acquisition of Florida City Gas.

Natural gas remains the primary fuel for electricity generation in Florida. As the state experiences ongoing population and economic growth, utilities are continuing to invest in pipeline infrastructure to support rising demand and reinforce supply security.

The Florida Energy Pathway is intended to complement existing interstate infrastructure by injecting additional intrastate transportation capacity directly into the heavily populated South Florida market.

Chesapeake Utilities expects to provide additional details on the pipeline project and its long-term capital investment plans during its second-quarter earnings conference call in August.