Market Hub Services & Pipeline Expansion
Offering Pipeline Supply Solutions for the Delmarva Peninsula & Neighboring Region

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February 7, 2018 through March 30, 2018 April 17, 2018

Market Hub Services &
Pipeline Expansion 

ESNG Market Hub Services &  Pipeline Expansion  Open Season Package  -- PDF Download --


NOTICE: In response to requests for more specifics relating to the market hub services portion of the proposed project and to allow all interested parties additional time to perform their internal analyses, ESNG is extending its Open Season for market hub services and pipeline expansion. Non-binding requests for capacity will now be accepted through 5 PM Eastern Standard Time on Tuesday, April 17th.


Project: Eastern Shore Natural Gas Company (“Eastern Shore”) is pleased to announce a non-binding Open Season for its Market Hub Services & Pipeline Expansion (“Project”). Eastern Shore proposes the firm transportation service capacity additions related to this Project to be phased in, with proposed in-service dates of November 1, 2020, November 1, 2021 and/or November 1, 2022.
This project will increase the capacity, deliverability, and diversity of natural gas in the region and will provide customers access to safe, secure, reliable and efficient energy solutions that are environmentally and economically smart.

Market Hub Services
Eastern Shore is proposing bi-directional upgrades to its transmission system at its existing interconnects with three major upstream pipelines - Texas Eastern Transmission, LP (“TETCo”), Transcontinental Gas Pipe Line Company, LLC (“Transco”) and Columbia Gas Transmission, LLC (“Columbia”) – in southeastern Pennsylvania. The interconnect enhancements will allow customers to source supply from interstate pipelines that are interconnected with domestically produced natural gas from the Marcellus and Utica regions. This supply diversity allows for participating shippers to take full advantage of market pricing differentials by moving natural gas between these three pipelines on an interchangeable basis.  

Pipeline Expansion
Eastern Shore is proposing a multi-year pipeline expansion that permits firm transportation service capacity additions to be phased in, with proposed in-service dates of November 1, 2020, November 1, 2021 and/or November 1, 2022. The delivery areas are likely to include, but are not limited to the following counties:

Southeastern PA
Queen Anne’s

New Castle





Shippers desiring natural gas firm transportation service in neighboring counties other than those specified above are encouraged to respond to this Open Season and indicate on the Shipper Nomination Form where they prefer their gas to be received and delivered. Eastern Shore will evaluate all requests received.

Benefits: With this Project, Eastern Shore proposes to expand the availability of natural gas on the Delmarva Peninsula and the neighboring region, reaching communities and businesses currently not served by clean burning natural gas, as well as provide additional natural gas service within Eastern Shore’s existing geographical footprint.   Natural gas is the cleanest and most efficient fossil fuel and offers strong advantages over other forms of energy.

In addition to an expanded geographic reach, the proposed upgrades would also allow for transportation services that are designed to move gas bi-directionally between TETCo, Transco and Columbia. These “hub” services allow shippers to overcome system constraints and maximize regional pipeline networks. As upstream development of reserves evolves, shippers participating in the Project can diversify gas supply and take advantage of pricing differentials amongst producing areas that continue to be affected by growing supply.

By providing an opportunity for existing and potential shippers to request new or additional firm transportation service both within Eastern Shore’s existing geographic footprint, across the entire Delmarva Peninsula and neighboring region, this Project allows safe, reliable, efficient and economic natural gas to be transported and utilized in the region. The Project’s phased-in approach for new firm transportation service will better serve participating shippers by allowing for more economical and efficient planning and construction of pipeline facilities in order to meet individual and aggregate shipper requirements.  Additionally, this phased-in approach provides Eastern Shore’s shippers the ability to phase in transportation service as it is needed, rather than in a single year.

Eastern Shore has a proven track record of providing safe, economical and reliable natural gas service to the Delmarva region. This project provides several benefits for communities and businesses of the Delmarva Peninsula and neighboring region:

  1. Creates increased supply reliability for natural gas to customers.
  2. Enhances energy security and diversifies risk by creating flexible supply sources.
  3. May reduce natural gas price spikes during periods of peak consumption by increasing gas supply.
  4. The need is already here – the Market Hub Services & Pipeline Expansion is in response to increased demand and regional growth, as well as anticipated increases in future demand.
  5. Provides a positive economic impact for the Delmarva Peninsula and its neighboring region – the Project will provide job generation and the potential for lower energy costs in the long-term. By increasing the availability of natural gas on the Delmarva Peninsula and its neighboring region, it provides economic development in those areas with an appealing selling point to attract businesses looking to relocate to buildings or industrials parks with natural gas service.
  6. Natural gas is the best clean fuel alternativeit is the most environmentally friendly choice, especially over coal and fuel oil.

Location: The following map of the Project area indicates where Eastern Shore’s current 455-mile, 17,745 hp of compression system is located, and the upstream interconnects that are proposed to be upgraded as part of the Project.

Please note the arrows on the following map are for general illustrative purposes only and do not represent specific planned routes. Specific pipeline routing will be determined based on responses to this Open Season Notice.

 open season market hub map.pngProject Design: Upon the close of the Open Season, Eastern Shore will develop a Project design that is capable of accommodating the level of customer commitments received in a manner that would allow Eastern Shore to achieve the most economical project consistent with safety, operational, and environmental considerations. Eastern Shore reserves the right to structure the Project as single-year, multi-year, or a combination of both, as Eastern Shore determines necessary in its sole discretion.  Eastern Shore also reserves the right to conduct additional open seasons in the future as necessary to support the Project or future projects.   

Participation: If you are interested in participating in this non-binding Open Season, please review the information herein and then complete the online Open Season Shipper Nomination Form and submit it to Eastern Shore by Friday, March 30, 2018 Tuesday, April 17, 2018.

Binding Precedent Agreements: If Eastern Shore decides to move forward with the Project, participants in the non-binding Open Season will be notified and will be expected to enter into binding Precedent Agreements. The Precedent Agreement becomes binding when it is fully executed by both Eastern Shore and the Open Season participant. Eastern Shore will revise the overall scope of the Project as necessary to reflect only those requests for new firm transportation service supported by properly executed Precedent Agreements. 

Project Information At-a-Glance

Targeted in-service dates:

In-Service Targets The actual in-service dates are, however, subject to the timely issuance of all necessary regulatory authorizations, approvals and permits and the acceptance of them by Eastern Shore. Construction delays beyond Eastern Shore’s control may also affect the actual in-service date.
November 1, 2020
November 1, 2021
November 1, 2022


Non-Binding Open Season Subscription Period:   Wednesday, February 7, 2018 through Tuesday, April 17, 2018.
Service:  Firm transportation service from Eastern Shore’s existing Receipt Point(s) to Shippers’ requested Delivery Point(s).
Term:  The requested contract term for firm transportation service hereunder shall be a minimum of fifteen (15) years.  If a different term is desired, such term should be indicated on the Open Season Nomination Form.  Eastern Shore will evaluate alternative terms on a case-by-case basis, and may, in its sole discretion exercised on a not unduly discriminatory basis, accept other terms proposed by shippers participating in this Open Season.

Rate:  Preliminary rates will be developed based on the estimated cost of facilities required to
serve the aggregate firm transportation service requests submitted during this Open Season process.  Initial rates will be calculated based on the level of binding customer commitments received (as evidenced by executed Precedent Agreements) and the cost of the facilities required to serve the aggregate firm transportation service requests of all shippers executing Precedent Agreements.       

Open Season Process 

The Subscription Period for this Open Season will commence on February 7, 2018 and close at 5:00 p.m. EDT on March 30, 2018 Tuesday, April 17, 2018. Eastern Shore may, in its sole discretion, exercised on a not unduly discriminatory basis, consider requests received after the close of the Subscription Period only if such requests are determined to enhance the Project and can be accommodated without adversely affecting the filing process and/or anticipated in-service dates.

The Subscription Period is necessitated by the target in-service dates. Parties interested in obtaining firm transportation service must submit an Open Season 2020-2022 Shipper Nomination Form, Open Season 2020-2022 Capacity Turn-Back Form (if applicable) and necessary financial information (if a new Shipper) no later than 5:00 pm EDT on March 30, 2018  April 17, 2018.

Submit by one of the following:

  • Online Open Season 2020-2022 Shipper Nomination Form Click Here
  • Online Open Season 2020-2022 Capacity Turn-Back Form Click Here
  • Mail / Express Mail / Overnight Delivery to:

ESNG Open Season–Market Hub Services & Pipeline Expansion
Eastern Shore Natural Gas Company
1110 Forrest Avenue,  Suite 201
Dover, DE 19904

  • E-mail to:
  • Fax to: 302-734-6745 (Attention: Jackie Mayan)




New Shippers are required to provide certain financial information as set forth in Eastern Shore’s FERC Gas Tariff.  Eastern Shore reserves the right to request additional information as it deems necessary.

Eastern Shore reserves the right to make a final determination of the size, scope and cost of the Project as well as a final evaluation of the overall economics of the Project, and, in its sole discretion, decide whether or not to proceed. All participating parties will be notified of Eastern Shore’s final decision.


Contact for Additional Information

Should you have any questions or require additional information regarding this Open Season, please contact:

Jackie Mayan 
Sr. Manager, Commercial Business & Marketing
(302) 213-7293   


Jeff Tietbohl
Vice President, Eastern Shore Natural Gas
(302) 734-6742

[1] Note that all Open Season Nomination Forms submitted via the Online Form are considered authorized submissions of the open season participant.


Eastern Shore Background Information

Eastern Shore has strong roots in the Delmarva Peninsula region. We are proud of our strong track record of being a good neighbor to the communities we serve and for being a dependable company with a passionate commitment to safety.

Eastern Shore is an interstate natural gas pipeline company that has been serving the natural gas transportation needs of the Delmarva Peninsula since 1959. Eastern Shore operates under the jurisdiction of the Federal Energy Regulatory Commission (“FERC”).  Eastern Shore is a wholly-owned subsidiary of Chesapeake Utilities Corporation (“Chesapeake”), a diversified energy company focused on delivering outstanding service and attaining sustainable growth that generates long-term value for its employees, customers, investors, and other stakeholders.

Eastern Shore has over 60 years of experience building, owning, operating and maintaining natural gas pipelines on the Delmarva Peninsula.

Eastern Shore receives natural gas at four upstream interstate pipeline interconnections for transportation to local distribution companies, industrial customers, and electric power generation customers located in Delaware, Maryland, and Pennsylvania. Eastern Shore’s pipeline system interconnects with Columbia Gas Transmission, LLC, in Daleville, Pennsylvania; with Transcontinental Gas Pipe Line Company, LLC, in Parkesburg, Pennsylvania, and Hockessin, Delaware; and with Texas Eastern Transmission, LP, near Honey Brook, Pennsylvania.

Eastern Shore strives to solve challenges its customers’ face regarding natural gas capacity by going beyond the norm to provide business solutions for customers that are cost effective and meet their needs. Eastern Shore conducts its business based on the following values:

  • Honorable – We will go above and beyond the norm to do the honorable thing
  • Personal Connection – We aspire to create a personal connection with people, like they are family
  • Don’t Rest on Laurels – We always strive to find new and better solutions
  • Relentless – We approach everything with determination and drive
  • Results-Oriented – We will make a meaningful impact