Folsom-based energy services holding company SJI said Monday it entered into an agreement to sell Elkton Gas to Chesapeake Utilities Corp. for approximately $15 million.
Elkton Gas serves about 7,000 residential and commercial customers in Cecil County, Md., and was acquired by SJI in July 2018. Completion of the transaction is expected to take place in the second quarter of 2020, following Maryland Public Service Commission Approval.
Both SJI and Chesapeake Utilities are focused on ensuring the continued delivery of safe, reliable, affordable natural gas service during this transition.
Chesapeake Utilities said it is committed to providing the same level of service Elkton Gas customers expect and deserve. The company will also maintain commitments to Elkton Gas employees.
“The sale of this asset supports the goals of our strategic plan, to focus on our core business in New Jersey while identifying opportunities to strengthen our balance sheet,” President and Chief Executive Officer Mike Renna said. “We look forward to collaborating with Chesapeake to successfully transition our Maryland customers to a new provider for their natural gas needs.”
On Dec. 6, SJI announced entering an agreement through its wholly-owned subsidiary Marina Energy LLC to sell the Marina Thermal Facility to DTE Energy Services for $100 million in cash.i