ABOUT OUR COMPANIES

Chesapeake Utilities Corporation has been serving Florida communities for decades, with over 560 employees across 43 counties in the state of Florida. We currently serve more than 270,000 Florida customers through 7,154 miles of natural gas pipelines and distribution lines. With 160+ years of energy experience and over $2 billion invested in Florida communities since 2019, we understand the importance of being a responsible neighbor. As a subsidiary of Chesapeake Utilities Corporation, Florida City Gas (FCG) has proudly served the region and Brevard County since 1946 and today also operates a LNG storage facility in South Florida. FCG serves 6,500+ homes with natural gas in Merritt Island.

BHE GT&S operates across 10 states with 1,500 employees and manages 5,400 miles of natural gas transmission pipelines. We currently operate four LNG facilities in Lusby, Maryland; Jacksonville, Florida; Trussville, Alabama; and Wyalusing, Pennsylvania. Our track record speaks for itself: in over 30 years of LNG operations, we’ve completed 25,000 deliveries with zero LNG spills, releases, or injuries.

OUR COMMITMENT TO THE COMMUNITY

Canaveral LNG is committed to transparent communications to stakeholders through written updates, community open houses, a website, and a dedicated email and phone line for timely responses.

Together, we will build critical energy infrastructure that supports the region’s growing industries while protecting the community and environment we all value.

LIQUEFIED NATURAL GAS

Liquefied Natural Gas (LNG) has many uses. It is used by industry to fuel manufacturing facilities, as a transportation fuel for fleet vehicles, to fuel cargo carrying ships, and to help meet peak winter and summer heating and cooling demands, along with fueling modern cruise ships and rockets going to space.

What is LNG?

LNG is natural gas that has been cooled to below -260°F, turning it into a liquid. This process reduces its volume by 600 times, making it easy to store and transport. When exposed to heat, it slowly vaporizes back into regular natural gas. As the U.S. Department of Energy states: “The physical and chemical properties of LNG render it safer than other commonly used hydrocarbons.”

Since 2022, BHE GT&S has safely completed over 200 bunkering events and delivered over 80 million gallons of LNG to cruise ships in Port Canaveral

The History of LNG

Over the course of a century, LNG technology has advanced. The first LNG plant in the United States was established in West Virginia in 1912, and it began producing LNG in 1917. Early LNG operations, like many other industrial technologies, faced challenges during development that resulted in significant safety improvements.

Modern LNG plants show very few similarities to their predecessors, having incorporated decades of engineering innovations, safety advancements, and operational best practices.

Understanding and Managing LNG

We believe in being transparent about any potential risks and how we resolve them. Every energy source, from gasoline to electricity to natural gas, contains inherent risks that must be properly managed.

Our approach to safety involves multiple, redundant systems working together:

1. Engineering Controls
2. Operational Protocols
3. Training and Preparedness
4. Regulatory Oversight
5. Emergency Response Capabilities

LNG in Perspective

Natural gas infrastructure exists in nearly every community in the United States:

• Approximately 3 million miles of natural gas pipelines nationwide
• 170 LNG facilities currently operating across the United States
• Natural gas heats and creates electricity for homes, businesses, hospitals, and schools safely every day
• Since 2022 BHE GT&S has supplied over 80 million gallons of LNG to cruise ships in Port Canaveral

Our companies have completed over 25,000 deliveries without a single significant incident.

We are dedicated to bringing the same standard of safety excellence to the Canaveral site, collaborating closely with the Cape Canaveral community and emergency services to ensure operations that safeguard people, property, and the environment.

INVESTING IN THE FUTURE

Private investment in energy infrastructure benefits the seaport, spaceport and local economy, improving reliability and strengthening U.S. security. That is why Chesapeake Utilities and BHE GT&S are coming together to form Canaveral LNG.

Developing regional LNG infrastructure shortens that supply chain, improves reliability, and reduces exposure to disruptions – all of which strengthen Florida’s resilience and support U.S. economic and national security interests.

This artist’s rendering is a conceptual design of a potential facility and is not intended for detailed engineering purposes.

NEED FOR LNG IN CAPE CANAVERAL

Cape Canaveral is at the center of an exciting transformation in both space exploration and maritime transportation. As the nation’s primary space launch facility, Cape Canaveral is witnessing the next generation of rockets, all fueled by LNG, a clean burning fuel that enables rocket boosters to be reused. Three companies (Relativity Space, ULA, and Blue Origin) have already conducted LNG fueled launches from the Cape, and demand is accelerating rapidly.

At the same time, Port Canaveral is seeing an increase in LNG fueled cruise ships. The number of ships utilizing this cleaner lower emission fuel is expected to double in the near future. These modern LNG fueled vessels emit much fewer emissions than diesel fueled vessels, which improves air quality for our community.

The Challenge

Current LNG supply in the region will be outpaced by demand by 2028. Right now, there’s no existing LNG supply in Florida that can meet the future needs of Cape Canaveral, meaning fuel must be trucked in from hundreds of miles away.

The Solution

A local LNG facility that brings LNG supply closer to the demand, reduces long haul truck traffic, improves reliability, and enhances energy security for the region. This facility will be supplied through a new natural gas pipeline that will be secured from Chesapeake Utilities and its subsidiaries. Electricity will either be self-generated using clean burning natural gas turbines or secured from secured from local electric utility.

The facility will serve two primary markets:

Space exploration

A single rocket launch requires at least 10 truckloads of LNG fuel, with larger rockets needing even more. By locating supply locally, Canaveral LNG will significantly reduce the number of trucks traveling hundreds of miles on Florida’s roads.

Maritime fueling

We plan to utilize newly constructed modern LNG barges for LNG deliveries to cruise ships.

SMALL SCALE LNG FACIITY

Canaveral LNG facility will be much smaller than large LNG export terminals. A large LNG export terminal would produce an estimated 50 times more LNG than Canaveral LNG, which is built to serve local fuel demand. Similarly, the LNG barges that would operate at Canaveral LNG are a small fraction the size of large LNG export vessels.

Canaveral LNG is:

A small-scale LNG liquefaction facility that will safely cool natural gas so it can be stored and transported.

• The LNG produced will help fuel the next generation of space and maritime industries
• LNG can be moved by specialized barges, reducing truck traffic on local roads

A regional energy resource that can support state and national energy security

• Strategic energy infrastructure provides access to reliable and resilient energy for a wide range of uses

A benefit to local air quality

• The World Port Sustainability Program reports that using LNG is ports can reduce harmful smog-producing emissions and particulate matter by nearly 100%
• Additional emissions reductions are possible as the space industry transitions from traditional rocket fuels to LNG, which many new long-range rockets are being built to use

Natural gas serving Merritt Island energy demands

• Natural gas infrastructure has safely served homes and businesses in the Canaveral region since the 1940s
• The project partners – Florida City Gas, a local utility since 1940, and BHE GT&S, which has completed 25,000 LNG deliveries without incident – are both experienced operations with strong safety records

Canaveral LNG is Not:

An LNG export terminal

• The proposed project is about 50 times smaller in production than a typical export facility
• The site itself is not large enough to support and export terminal

A facility that regularly flares gas

• The proposed facility will not have an open flare
• If flaring is ever necessary, it would only be used as an important safety measure or means to reduce emissions

This artist’s rendering is a conceptual design of a potential facility and is not intended for detailed engineering purposes.

POTENTIAL JOBS AND ECONOMIC IMPACT

A LNG facility in Cape Canaveral is anticipated to provide approximately 50-100 direct and associated local jobs. The facility will also contribute to Brevard County’s tax base and directly support two of the region’s largest industries, aerospace and maritime, with a reliable and economical fuel solution.

CANAVERAL LNG IS COMMITTED TO SAFETY

We work closely with both regulators and first responders to maximize safety and reliability. Protecting people, safeguarding our communities, and securing our assets is at the heart of our operating culture. We ensure safety and compliance in our operations and everyday processes.

LNG Facilities are Built for Safe Operations

LNG facilities are built with multiple layers of protection to keep operations safe. Spill containment systems, automated fire and vapor suppression, and continuous gas, fire, and temperature monitoring work together to quickly control any abnormal event. Additional safeguards—such as vapor fences, vacuum jacketed piping, and automatic shutdown systems—help prevent issues from spreading. Operators follow strict maintenance programs to ensure every safety system performs reliably. Learn more from: LNG Safety | PHMSA

Local Collaboration

Canaveral LNG has strong relationships with local emergency personnel and has provided on-site tours of current operating facilities, trainings, and LNG safety sessions with local first responders and fire chiefs.

We are dedicated to bringing the same standard of safety excellence to the Canaveral site, collaborating closely with the Cape Canaveral community and emergency services to ensure operations that safeguard people, property, and the environment.

Operational Excellence

For over two decades Canaveral LNG partners have been operating four LNG facilities and have made 25,000 deliveries with zero LNG spills, releases, or injuries. They have a safety track record ten times better than the industry average.

Regulatory Integrity

The LNG industry has a robust regulatory system and is closely monitored by dozens of federal and state agencies.

More About Safety

Frequently Asked Safety Questions

Safety Facts

• LNG does not burn or explode in its liquid form.¹
• LNG vapors only burn if in a narrow 5–15% concentration range.²
• Hazards occur only if LNG is released, warms, vaporizes, mixes in range, and meets an ignition source.³
• LNG is non-corrosive, non-toxic, and has a low emissions profile, making it a cleaner alternative to traditional fuels.⁴
• LNG plants are engineered and regulated with a focus on safety.⁵
  PHMSA requires containment, gas detection, fire/vapor suppression, and automatic shutdown systems.
• LNG behaves predictably if released. LNG vaporizes quickly and disperses as concentrations fall below flammability limits.⁶
• As natural gas warms, it becomes lighter than air and dissipates upward, not sideways.⁷
• Strong regulation and oversight: PHMSA sets federal engineering, design, and operational safety standards.⁸
• Strong global safety record: Decades of safe LNG operation documented by independent research.⁹
• Natural gas’s narrow flammability range significantly reduces explosion risk, especially when compared to other commonly used fuels like gasoline, diesel and propane.¹⁰
• Producing LNG locally, will save an additional estimated 280 tons per year of non-GHG air pollutants – the equivalent of removing over 1,900 cars from state roads per year – by avoiding transporting the LNG from remote facilities.¹¹
• A large LNG export terminal would be around 50 times larger than (or only 2% the size of) Canaveral LNG, which is built to serve local fuel demand. Similarly, the LNG barges that would operate at Canaveral LNG are a small fraction the size of large LNG export vessels.¹¹

Sources

1. University of Texas Bureau of Economic Geology (Center for Energy Economics) – LNG Safety & Security Study (PDF)
2. U.S. Environmental Protection Agency (EPA) – Natural Gas FAQ Fact Sheet (PDF)
3. PNG LNG – EIS Attachment, LNG Behavior (PDF)
4. U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) – LNG Safety
5. U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) – LNG Safety Requirements
6. Accredited LNG hazard characterization (scientific EIS research) – PNG LNG – EIS Attachment, LNG Behavior (PDF)
7. U.S. Environmental Protection Agency (EPA) – Natural Gas Behavior Summary (PDF)
8. U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) – LNG Safety Program
9. University of Texas Bureau of Economic Geology (Center for Energy Economics) – LNG Safety & Security Study (PDF)
10. U.S. Department of Energy’s Alternative Fuels Data Center (AFDC) – Fuel Properties Comparison
11. Canaveral LNG

PRIORITIZING ENVIRONMENTAL RESPONSIBILITY

We take our environmental responsibilities seriously. From initial site selection through design, construction, and operation, environmental protection is integrated into every decision we make.

Technical Studies Conducted

• The proposed facility will undergo numerous environmental studies and require multiple permits to ensure environmental protection
• Four technical studies have been completed (wetland, marine, siting and seagrass) determining viability of an LNG facility and evaluating initial environmental impacts
• Permits related to air quality, wetlands, endangered species, the U.S. Army Corps of Engineers waterway permits, coastal management, and construction permits are expected

WILDLIFE AND HABITAT PROTECTION

The proposed site’s closeness to the port allows us to operate within already approved depth limits and vessel movements to existing waterways. In collaboration with the U.S. Fish and Wildlife Service (USFWS), the Florida Fish and Wildlife Conservation Committee (FWC), the U.S. Army Corps of Engineers (Army Corps), and the U.S. Coast Guard, we will implement manatee avoidance and mitigation strategies that may include:

• Manatee observers during construction and vessel operations
• Vessel speed restrictions
• Seasonal work when manatees are potentially absent or less active

As part of final design and approvals, appropriate mitigations and protections will be implemented based on wildlife survey results and agency coordination.

AIR QUALITY

The facility will have minimal air emissions impact on the community.

By attracting the most modern, lowest emission cruise ships to Port Canaveral, the imagined project will improve overall air quality in the region.

EMISSIONS

Primary emissions source

If we choose to generate electricity onsite for our needs, the turbines required will use clean burning natural gas. This design would be reviewed and permitted through the Florida Department of Environmental Protection (FL DEP).

Other sources

Any minor emissions from the liquefaction process will be evaluated and reviewed as part of final design and permitting.

PERMITTING AND REGULATORY OVERSIGHT

The imagined project will require multiple federal, state, and local permits to ensure environmental protection. These include permits related to air quality, wetlands, endangered species, the U.S. Army Corps of Engineers waterway permits, coastal management, and construction permits. Each permit involves thorough review by regulatory agencies to ensure the facility meets environmental standards. Key agencies involved include:

• Brevard County
• Florida Department of Environmental Protection (FL DEP)
• Florida Fish and Wildlife Conservation Commission (FWC)
• St. Johns River Water Management District
• U.S. Army Corps of Engineers
• U.S. Fish and Wildlife Service (USFWS)

Four technical studies have been completed already (wetland, marine, siting, and seagrass) determining viability of an LNG facility and evaluating initial environmental impacts.

REDUCING REGIONAL ENVIRONMENTAL IMPACT

Beyond the facility itself, this proposal provides local LNG fuel that would help to:

Reduce truck transportation emissions in the area

Shortening the delivery chain from hundreds of miles to local supply significantly reduces trucking emissions.

Reduce use of diesel fuel at the Port by marine vessels

LNG provides up to 23% greenhouse gas reductions compared to traditional marine fuels and dramatically reduces sulfur, nitrogen oxides, and particulate matter.

Support use of LNG as a cleaner fuel for aerospace rocket launches

LNG’s clean combustion properties support rocket engine reusability and reduce emissions from space launch operations.

ONGOING ENVIRONMENTAL STEWARDSHIP

Our commitment to environmental protection doesn’t end with construction. We will maintain ongoing compliance with all environmental permits and regulations, conduct regular monitoring, and work with environmental agencies to ensure we are meeting our commitments to your community and the natural environment we all share.

COMMITTED TO OUR COMMUNITY

Canaveral LNG is committed to transparent communications to stakeholders through written updates, community open houses, a website, and a dedicated email and phone line for timely responses.

Listen and Learn Event

Please join us to learn more about the opportunity BHE GT&S and Chesapeake Utilities Corporation are jointly assessing to develop a new liquefied natural gas (LNG) facility to meet commercial energy demand on the Florida coast. There will be no formal presentation and stations will be set up in a come-and-go tabling open house format to encourage conversations and receive feedback.

Wednesday, February 18, 2026
5–7 p.m.

Cape Canaveral Community Center
7920 Orange Avenue
Cape Canaveral, Florida

Learn more about LNG market and industry demands for cleaner fuel alternatives.

YOUR INPUT MATTERS

We encourage you to reach out with any questions or concerns. Your input matters, and we are committed to being good neighbors and responsible community members.

Toll-free number
+1-855-617-6104

Email
CanaveralLNG@erm.com