Natural gas coming to Worcester
Gas suppliers will be polled for interest; change could happen by end of year
OCEAN CITY -- Natural gas service could be available to Worcester County businesses and residents by the end of this year.
Chesapeake Utilities Corp., based in southeastern Pennsylvania, might make it happen. The company has known for a while that Eastern Shore Gas has had an interest in ultimately converting its services from propane to natural gas once the corporation was in a position to expand its pipelines into the county, said Stephen Thompson, vice president of Chesapeake Utilities.
In 2010, Chesapeake Utilities expanded into Millsboro and explored the economic viability of expanding its pipeline and distribution infrastructure to Worcester, Thompson said.
From a price standpoint, conversion to natural gas is an overall value, Thompson said, adding that it is a cleaner substitute for other types of gas and energy, including electricity in some instances. It can be used to heat homes and businesses, can play a role in industrial production, and on a large scale can generate electric power.
The first step toward expansion is to gather requests from current gas distributors in the area of interest, which could happen during a current "open season" that closes at the end of the week, according to Thompson.
Eastern Shore Gas has not yet made the formal request, and neither has Chesapeake Utilities' own distribution subsidiary. Eastern Shore Gas general manager Steve Ashcraft was not available for comment on the company's potential request, and Thompson said the Chesapeake subsidiary was still looking at potential marketing opportunities and hadn't come to a final conclusion on potential action.
If the corporation garners requests, it would then seek authority from the federal government to build facilities and extend its lines, and distributors would seek permission from the Maryland Public Service Commission to provide natural gas services.
"If everything goes as we hope, we're optimistic that a project could go forward that would extend our pipeline to an area in northern Worcester County by the end of the year," Thompson said.
Since there is not yet a natural gas presence in Worcester County, the corporation believes the MPSC will be supportive of granting requests, he said.
Once pipes and facilities are in place, natural gas would be available to customers within a certain proximity of the pipeline, but the specifics of that distance cannot yet be estimated.
"It's almost a case-by-case-basis because you have to look at the economics of converting your energy system for homeowners and equipment conversions for businesses," Ashcraft said.
Chesapeake Utilities currently supplies large, small and residential customers in the Salisbury-Fruitland area with natural gas, Ashcraft said, naming Perdue Foods Inc. as one of its larger business customers.
Earlier this month, the corporation signed agreements with Beebe Medical Center and SPI Pharma for natural gas service in Lewes. In February, Dogfish Head Brewery in Milton signed an agreement as well.
Chesapeake Utilities Corp., based in southeastern Pennsylvania, might make it happen. The company has known for a while that Eastern Shore Gas has had an interest in ultimately converting its services from propane to natural gas once the corporation was in a position to expand its pipelines into the county, said Stephen Thompson, vice president of Chesapeake Utilities.
In 2010, Chesapeake Utilities expanded into Millsboro and explored the economic viability of expanding its pipeline and distribution infrastructure to Worcester, Thompson said.
From a price standpoint, conversion to natural gas is an overall value, Thompson said, adding that it is a cleaner substitute for other types of gas and energy, including electricity in some instances. It can be used to heat homes and businesses, can play a role in industrial production, and on a large scale can generate electric power.
The first step toward expansion is to gather requests from current gas distributors in the area of interest, which could happen during a current "open season" that closes at the end of the week, according to Thompson.
Eastern Shore Gas has not yet made the formal request, and neither has Chesapeake Utilities' own distribution subsidiary. Eastern Shore Gas general manager Steve Ashcraft was not available for comment on the company's potential request, and Thompson said the Chesapeake subsidiary was still looking at potential marketing opportunities and hadn't come to a final conclusion on potential action.
If the corporation garners requests, it would then seek authority from the federal government to build facilities and extend its lines, and distributors would seek permission from the Maryland Public Service Commission to provide natural gas services.
"If everything goes as we hope, we're optimistic that a project could go forward that would extend our pipeline to an area in northern Worcester County by the end of the year," Thompson said.
Since there is not yet a natural gas presence in Worcester County, the corporation believes the MPSC will be supportive of granting requests, he said.
Once pipes and facilities are in place, natural gas would be available to customers within a certain proximity of the pipeline, but the specifics of that distance cannot yet be estimated.
"It's almost a case-by-case-basis because you have to look at the economics of converting your energy system for homeowners and equipment conversions for businesses," Ashcraft said.
Chesapeake Utilities currently supplies large, small and residential customers in the Salisbury-Fruitland area with natural gas, Ashcraft said, naming Perdue Foods Inc. as one of its larger business customers.
Earlier this month, the corporation signed agreements with Beebe Medical Center and SPI Pharma for natural gas service in Lewes. In February, Dogfish Head Brewery in Milton signed an agreement as well.
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