Delmarva Power submitted a request to the state utility for permission to build a liquefied natural gas storage facility in northern Delaware.
The company is proposing to build five 100,000 gallon gas storage tanks, which would improve the reliability of its natural gas supply and distribution operations.
The company said this will eliminate the need to renew several expiring interstate pipeline contracts. Also there is a possibility of adding five more to meet future customer demands.
The facility would be built on property near Red Lion that is already home to a Delmarva Power substation and a Bloom Energy fuel cell generation facility, according to a docket filing last week.
Delmarva customers would save an estimated $124 million over 30 years after the construction and operation of the storage facility, company said.