Chesapeake Utilities said on Monday its unit Peninsula Pipeline Company will develop, construct and operate a natural gas pipeline project in Florida for about $1.2 B.

The project will help expand natural gas transportation capacity to address regional supply constraints, it said.

Utilities have been investing in new infrastructure to improve reliability and support growing residential, commercial and power generation needs.

The Florida Energy Pathway is expected to be a 24-in. gas pipeline from Palm Beach to Miami-Dade counties, supported by nearly 250,000 dekatherms per day of firm shipping commitments.

Chesapeake Utilities expects the project to enter service in 2030, subject to final commissioning, and said it plans to partner with one or more third parties that could own up to 49% of the project.

The company said the project represents a long-term regulated growth opportunity and builds on its expanded presence in south Florida following its acquisition of Florida City Gas.

"Florida continues to lead the nation in population and economic growth, which drives increasing energy demand. In the south Florida area, this has led to significant energy supply constraints," said CEO Jeff Householder.