History In The Making
ESNG finalized precedent agreements with customers for its 2017 Expansion Project that will add significant firm transportation pipeline capacity in the region.
Precedent agreements have been signed by seven of ESNG’s existing customers who have requested new firm transportation services. As a result of this expansion, this project will provide more than 60,000 dekatherms per day of additional firm natural gas transportation deliverability on the pipeline.
“This is an estimated $99 million expansion project for ESNG, which is the single largest expansion project we have ever done,” said Jeff Tietbohl, Vice President of ESNG. “Through a resident’s perspective, our expansion will provide access to a lower-cost fuel supply.”
“This expansion of firm natural gas transportation capacity is a result of our ongoing commitment to providing new service and supply options for our customers. The firm transportation capacity added will position us to meet growing market demand for reliable energy in the region, as evidenced by the record number of customers participating in the project.”
— Steve Thompson, Senior Vice President and President of ESNG
The project is a 33-mile expansion of our ESNG pipeline based on market demands and customer needs consisting of approximately 23 miles of pipeline looping in Pennsylvania, Maryland and Delaware; upgrades to existing metering facilities; installation of an additional 3,550 horsepower compressor unit at the existing Daleville Compressor Station in Chester County, Pennsylvania; and approximately 17 miles of new mainline extension and the addition of two pressure control stations in Sussex County, Delaware.
ESNG estimates that it will generate gross margin of approximately $15.7 million in the first full year after the new transportation services go into effect.
“This project is the single largest expansion in ESNG’s long history of providing safe, clean, domestic and affordable natural gas. Our Company continues to invest in energy infrastructure throughout the Mid-Atlantic area. This project will increase the firm transportation deliverability to our region by approximately 25 percent, supporting economic growth in the region.”
— Mike McMasters, President and CEO