(Philadelphia, PA – November 15, 2004) – Mayor John Street along with David Hyman, Chairman and Thomas Knudsen, President and CEO of the Philadelphia Gas Works (PGW) today announced that PGW has issued an RFP inviting energy companies to submit proposals to expand PGW’s Port Richmond LNG plant along the Delaware River into a liquefied natural gas (LNG) import shipping terminal. The RFP also invites plans to develop an electric co-generation plant and a facility to strip away liquids from certain kinds of imported LNG.

The development, to be called the Philadelphia Freedom Energy Center, would be funded by a major energy company, which would pay PGW leasing and tolling revenues. The project would create hundreds of new jobs during construction and upon completion would generate new permanent jobs and tax revenues for the city. It also would bring a new corporate citizen to Philadelphia and establish Philadelphia as a leader in the search for environmentally safe clean energy sources in the 21st century.

“The expansion of PGW’s existing Port Richmond LNG Plant will bring new energy to the North Delaware corridor and new opportunities to Northeast Philadelphia. It also gives PGW an important new business opportunity which will generate substantial new revenues. Those revenues will improve PGW’s financial position and directly benefit its customers,” said Mayor Street.

Mayor Street also said “We are committed to this project and confident that with a world-class partner we can build upon Port Richmond’s 35 year history of safety and security.”

Thomas Knudsen, President and CEO of PGW added, “By taking advantage of PGW’s experience, the value of its existing facility and strategic location in the Mid-Atlantic region, we have significant advantages over the more than 50 other cities and towns that are pursuing new LNG import terminals. Now is the time to capitalize on those advantages.” Added David Hyman, Chairman of the Board, “this project requires safety and security clearances from several government agencies before it can move forward. On behalf of the Board of Directors I want to personally assure our customers and the citizens of Philadelphia that we will diligently pursue those clearances. We also will work with the Gas Commission and our political, civic and community leaders to respond to all legitimate questions and concerns as we progress toward the successful completion of this necessary project.”

PGW’s Port Richmond LNG Plant was constructed in the early 1970s as a means of ensuring a reliable supply of natural gas for Philadelphia. The existing LNG facility occupies approximately 20 acres of a 47-acre site on the Delaware River. It consists of two large storage tanks with a combined capacity to hold nearly 49 million gallons of LNG. Currently, the Port Richmond plant stores an converts LNG to natural gas that can be used by PGW customers. It has been operated safely for 40 years.

Under the proposed plan, LNG tankers would move up the Delaware River and deliver LNG to the Port Richmond Plant using the Tioga Marine Terminal. The completion of this project would be a great compliment to our New River City vision for the North Delaware River,” added Mayor Street.

LNG is natural gas converted into liquid by refrigeration to - 258 degrees Fahrenheit. LNG requires 260 times less storage space than natural gas in its gaseous form. LNG does not burn in its liquid state and, because it is lighter than air, vaporizes when it is released into air. It is not explosive and is non-toxic.