Chesapeake Utilities Corp.'s Florida-based subsidiary and an affiliate of TECO Peoples Gas agreed to jointly develop an estimated $65 million natural gas pipeline that will boost gas availability in the state's Nassau and Duval counties.

The Callahan Intrastate pipeline project will be developed by Chesapeake Utilities unit Peninsula Pipeline Co. Inc. and TECO Peoples Gas affiliate SeaCoast Gas Transmission LLC, according to a May 22 news release. The project facilities would include a 26.5-mile-long gas pipeline that will run from a gate station to be built on the Southern Natural Gas Cypress interstate pipeline near Crawford Road in Callahan, Fla., to Radio Avenue and Highway 17 in Yulee, Fla.

The two developers will split the projected cost of the infrastructure, but Peninsula Pipeline will be the one to construct and fully maintain the pipeline. Construction is slated to start in June, allowing the project to meet an in-service date of September 2020.

Chesapeake Utilities said the additional gas supply to Nassau and Duval counties will allow its subsidiary Florida Public Utilities Co. and TECO Peoples Gas to expand natural gas distribution service in the areas.

Chesapeake Utilities is involved in natural gas distribution, gathering, processing and marketing, as well as electricity and propane distribution. TECO Peoples Gas, a utility subsidiary of Canada's Emera Inc., serves about 375,000 customers across Florida.