Chesapeake considering conversion away from propane for acquisition

July 3, 2012 By    

Chesapeake Utilities Corp. has agreed to purchase the operating assets of Eastern Shore Gas Co. and its affiliate, Eastern Shore Propane Co.

Based in Worcester County, Md., Eastern Shore Gas currently provides propane distribution service to about 11,000 residential and commercial customers. The propane distribution services are provided from central storage facilities through underground gas distribution mains. Additionally, Eastern Shore Propane provides propane bulk delivery service via individual propane tanks to more than 500 customers throughout Worcester County.

Now, however, Chesapeake is evaluating a potential conversion of some Eastern Shore facilities from propane to natural gas.

“Where economical and feasible, Chesapeake expects to undertake such conversions,” says Jeffrey Tietbohl, Chesapeake vice president and senior leader responsible for the company’s natural gas distribution operating division in Maryland, in a press release. “Chesapeake is also in the process of developing programs to assist customers in the conversion to natural gas in those areas where it becomes available.”

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About the Author:

Kevin Yanik was a senior editor at LP Gas Magazine.

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