Natural Gas project gets major boost

Accomack County is moving forward with a long-awaited effort to bring piped natural gas to the Eastern Shore, a project officials say could play a major role in stabilizing the local economy.

Accomack County Administrator Mike Mason told the Board of Supervisors Wednesday that an agreement with the Commonwealth is now fully in place and the County has received the entire six-and-a-half-million-dollar award designated for natural-gas expansion. With that funding secured, Accomack is preparing a request for proposals that will seek utility companies to build, own, and operate a new natural-gas system serving industrial, commercial, and residential customers along Lankford Highway as far south as Perdue in Accomac. The county is offering up to $6.5 million to reimburse engineering, land acquisition, permitting, and related costs. Once built, the selected utility would cover all ongoing operations and maintenance.

A new economic report suggests the timing may be critical.

For decades, Chesapeake Utilities has been extending natural-gas service down the Delmarva Peninsula through its Del Mar Pathway Project. Its latest work brought gas lines to just north of the Virginia state line. The company has now completed an initial review of bringing gas directly into Accomack County, a move that could benefit major employers including Perdue, Tyson, and NASA’s Wallops Flight Facility. But the company says the effort is still in early development and may need public support to make the numbers work. The $6.5 million grant is a big step toward that end.

The economic case is significant. Over the past decade, Accomack’s working-age population has fallen nine percent, while the state population grew. Employment in the county has dropped more than four percent, even as statewide jobs increased eight percent.

One factor, analysts say, is limited access to natural gas. Only one percent of households in Accomack use it. Nearly forty percent rely on propane or fuel oil, compared to just eight percent statewide. And for new industries scouting locations, about a third require natural-gas service.

The price difference is also stark. Federal data show natural gas costs about 57 percent less than propane for homeowners, and as much as 75 percent less than electricity for industrial users.

For Perdue and Tyson, which together account for roughly a third of all private-sector jobs in Accomack, those cost disparities affect competitiveness. Analysts warn that without cheaper fuel, the county could ultimately be at risk of losing more than four thousand jobs and over a billion dollars in annual economic activity.

Mason said that the upcoming RFP is a key step toward reversing those trends and securing a more competitive, affordable energy supply for residents and businesses.