NextEra Energy Resources to Buy Florida Energy Pathway
The renewable-energy developer will take a stake in a $1.2 billion south Florida gas pipeline that Chesapeake Utilities had planned to partner on.
NextEra Energy Resources agreed to acquire an interest in the Florida Energy Pathway, a $1.2 billion intrastate natural gas pipeline in south Florida that Chesapeake Utilities Corporation (CPK) had planned to develop with outside partners.
The deal is an asset purchase. NextEra Energy Resources, the renewable-energy development arm of NextEra Energy, will take a stake in the project after Chesapeake Utilities said it had received strong interest from potential partners since the pipeline was first announced.
Chesapeake Utilities and its subsidiary Peninsula Pipeline Company had said in July that FEP would be a 24-inch line from Palm Beach County to Miami-Dade County, with about 250,000 dekatherms per day of firm commitments from investment-grade shippers and upstream supply tied to Florida Gas Transmission’s Phase IX expansion. Total investment was estimated at about $1.2 billion, with the company intending to fund and own at least 51% and partner with one or more third parties for up to 49%.
The project is designed to expand natural gas transportation capacity, address regional supply constraints, meet growing customer demand, and enhance energy reliability in one of the nation’s fastest-growing regions. Chesapeake Utilities had described FEP as a long-term, regulated, organic growth opportunity aligned with its natural gas transportation expertise and its increased presence in south Florida after the Florida City Gas acquisition.
“Since announcing the project in July, we have received strong interest from potential partners, reinforcing the value of this regulated infrastructure opportunity,” said Jeff Householder, chair of the board, president, and chief executive officer of Chesapeake Utilities Corporation.
The pipeline was targeted to be in service in 2030, subject to final commissioning, with engineering and design underway, permitting expected to begin later in 2026, and a two-year construction period. Chesapeake Utilities had raised its 2026 capital guidance to $550 million to $600 million in light of advances on various capital projects, including FEP.
The company had also increased capacity under its revolving credit facility to $650 million to support capital investment growth. Florida’s state population growth relative to the prior year is expected to average 297,200 new net residents per year for the five-year period ending April 2030.
NextEra Energy Resources’ participation fills the minority-ownership slot Chesapeake Utilities had left open. The regulated pipeline remains a Peninsula Pipeline Company build, with the utility retaining a controlling stake and the 2030 in-service target.