Florida Public Utilities Corp. and Pensacola Energy have partnered to transport and supply natural gas to the city of Pensacola and a specialty chemicals plant owned by Ascend Performance Materials.
The $36 million project, approved by the Federal Energy Regulatory Commission in February, includes 43 miles of pipeline to be laid from Century, Fla., to Pensacola.
Currently, Pensacola Energy receives all gas deliveries from a single interstate pipeline, which can result in outages, Kallanish Energy learns. City officials say having access to a second pipeline would improve reliability and could lead to lower natural gas delivery costs.
According to a press release from Florida Public Utilities’ parent company, Chesapeake Utilities, the pipeline construction is an investment.
The project is currently in the permitting phase, but construction could begin as early as June. Completion of the natural gas pipeline is slated for early 2018.