The project, if approved, will facilitate the marketing and sale of Liquefied Natural Gas (LNG) to regional customers by PEC, with the potential to generate millions of dollars in PGW revenue each year, through fees and revenue-sharing.
As proposed, PEC will build new liquefaction and truck loading facilities and will market and sell LNG, while PGW will operate the LNG facilities and sell related services to PEC. The new facilities will occupy a limited footprint entirely within PGW’s existing Passyunk Plant.
PASSYUNK P3 PROJECT OVERVIEW
Project Costs
PEC is responsible for all costs in developing the new facilities at PGW’s Passyunk Plant.
As submitted, the P3 is structured with no cost impact on PGW ratepayers.
Revenue & Value
This project offers the potential for more than $4 million in additional revenue for PGW, each year for 25 years.
The project also represents an improved utilization of PGW’s existing LNG infrastructure, which will further increase the value of this city-owned asset.
Environmental Considerations
No new pipeline is required for this P3 project.
Air emissions from this project will be minimal and fall significantly below minimum permitting limits.
The project will require no new water supplies and no new sewer connections.
Even after PEC begins sales, the number of trucks entering and exiting the Passyunk Plant each day will not increase significantly.
LNG represents a cleaner fuel option for regional, large-scale customers that currently rely on fuel oil, coal, or international fuel imports, to conduct business.
This P3 project supports Philadelphia’s commitment to a clean, affordable, and healthy energy future.
PUBLIC-PRIVATE PARTNERSHIP OVERVIEW
PGW’s proposed P3 partner is Passyunk Energy Center LLC a special purpose entity established by Liberty Energy Trust GP, LLC (LET) to develop the LNG facilities and then market and sell LNG to regional customers. LET is a Conshohocken-based energy infrastructure development and investment company.
PEC will build – and PGW will then lease, at a nominal fee – new liquefaction and loading facilities. PGW will then operate the new facilities and sell LNG production services to PEC for a fee.
QUOTES
“This project takes PGW’s decades of LNG experience and expertise and puts it to new use on behalf of our customers, and the City,” said Craig E. White, president and CEO of Philadelphia Gas Works. “While working with LNG isn’t new, we are looking forward to opening up an important additional revenue stream – which we can reinvest right back into the business, on behalf of our ratepayers. LNG has saved Philadelphia customers over $3 billion dollars since we began processing LNG in Philadelphia. Now, with this P3 project, PGW is moving beyond saving money to generating millions in additional revenue on behalf of its customers.”
“Improved utilization of the PGW’s LNG infrastructure unlocks a cleaner fuel source for utilities, transportation sector and power generations that are eager to switch from oil and oil-based products” said Charlie Ryan, founding partner of LET. “We are excited to be a part of this P3 effort that upgrades not only the Philadelphia energy platform through the most effective energy storage and peak supply solution, but also leverages Philadelphia’s location as a regional logistics hub and the energy innovation center.”
Source: Company Press Release
