Chesapeake Utilities Corp., a Delaware-based public utility, plans to purchase the operating assets of Eastern Shore Gas Co. and its affiliate, Eastern Shore Propane Co.
Based in Worcester County, Maryland, Eastern Shore provides propane distribution service to some 11,000 residential and commercial customers in and around Worcester County. The propane distribution services are provided from central storage facilities through underground gas distribution mains and services.
The transaction expands Chesapeake Utilities' distribution system operations on the Eastern Shore of Maryland and adds more than 11,500 new customers, almost doubling Chesapeake Utilities' current 12,800 natural gas distribution system.
In 2011, Chesapeake announced plans to initially extend its natural gas transmission pipeline through its subsidiary Eastern Shore Natural Gas Company (ESNG) to parts of Worcester County. ESNG's construction of the natural gas transmission pipeline in Worcester County is proceeding as planned and is expected to be completed later this summer.
Chesapeake expects to finance the purchase of the Eastern Shore Gas and Eastern Shore Propane operating assets using unsecured short-term debt. The acquisition is expected to be completed in fourth-quarter 2012.
Recommended Reading
E&P Highlights: Jan. 21, 2025
2025-01-21 - Here’s a roundup of the latest E&P headlines, with Flowserve getting a contract from ADNOC and a couple of offshore oil and gas discoveries.
Perission Petroleum Extends Colombian Assets Sale
2025-01-22 - The sale was delayed due to pending formal confirmation regarding the extension of Perission Petroleum’s E&P license in Colombia, specifically for Block VMM-17.
McDermott Completes Project Offshore East Malaysia Ahead of Schedule
2025-02-05 - McDermott International replaced a gas lift riser and installed new equipment in water depth of 1,400 m for Thailand national oil company PTTEP.
E&P Highlights: Jan. 6, 2025
2025-01-06 - Here’s a roundup of the latest E&P headlines, including company resignations and promotions and the acquisition of an oilfield service and supply company.
Analysts’ Oilfield Services Forecast: Muddling Through 2025
2025-01-21 - Industry analysts see flat spending and production affecting key OFS players in the year ahead.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.