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PGW and the Port Richmond Plant


According to Philly.com, Philadelphia Gas Works (PGW) aims to expand their Port Richmond liquefied natural gas (LNG) plant to produce fuel for non-utility customers. The project, which is to be completed by early 2019, is priced at approximately $120 million. We described this plan and the potential implications in our August 2015 story, “More Bad Gas in Port Richmond.”

On Tuesday, April 5, PGW will solicit backing from other companies to purchase and market LNG, for there is a supposed increasing demand for liquefied natural gas to provide fuel for long-haul trucks, trains, marine vessels and power-generation facilities.

“We believe LNG is a fertile opportunity for us,” said PGW chief executive Craig White.

Gas-marketing companies are required to submit proposals by May 23. PGW anticipates selecting a vendor by September of this year. The marketing agreement would allow PGW to approach City Council and the Philadelphia Gas Commission in order to obtain the necessary funds for the expansion project in Port Richmond. If the project ultimately fails, existing PGW customers will be forced to endure the subsequent blow.

According to White, the plant expansion is liable to generate an additional $15 million each year, more than double the project’s annual debt service. “I’ve been here 36 years, and that’s the single largest new load opportunity we’ve been able to generate at Philadelphia Gas Works,” he said.

The project will consume approximately 21 million cubic feet of gas daily, which would yield about a quarter of a million gallons of liquefied natural gas (no additional pipelines necessary). This will in turn generate 63 million more gallons of LNG each year.

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