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Philadelphia Gas Works Seeks Approval For P3 Project To Unlock LNG Revenue Stream

Proposed Partnership could generate more than four million dollars a year of additional revenue, equivalent to adding approximately 6,000 new residential customers.

[Philadelphia, PA - September 20, 2018] - Today, Philadelphia Gas Works (PGW) submitted details of its proposed Public Private Partnership (P3) project with Passyunk Energy Center, LLC (PEC) to the Philadelphia Gas Commission (PGC) for review. 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.”

 

ABOUT PGW’S PASSYUNK PLANT

PGW’s Passyunk Plant, located in South Philadelphia, has had an LNG facility on site since 1979, and currently operates as a natural gas distribution, liquefied natural gas storage and vaporization facility. It also houses PGW training facilities, its Chemical Services Department and its laboratory. The Passyunk Plant operates 24 hours a day, 7 days a week to support Philadelphia’s energy needs.

ABOUT PGW

Founded in 1836, The Philadelphia Gas Works (PGW) is owned by the City of Philadelphia and is the largest municipally-owned gas utility in the country. PGW manages a distribution system of approx. 6,000 miles of gas mains and services for its almost 500,000 customers. PGW operations are managed by the non-profit Philadelphia Facilities Management Corporation (PFMC).

More information about the company is available at pgworks.com. 

ABOUT LIBERTY ENERGY TRUST

Liberty Energy Trust GP, LLC is a Pennsylvania-based energy infrastructure investment firm focused on expanding the use of clean energy throughout the utility, transportation, and electric generation markets in the United States.  Liberty operates in New England and the mid-Atlantic energy markets. 

More information about the company is available at libertyenergytrust.com   


PHILADELPHIA GAS WORKS LAUNCHES NEW PORTAL TO SUPPORT IMPROVED UTILIZATION OF DIVERSE SUPPLIERS AND SMALL BUSINESSES

[PHILADELPHIA - JUNE 19, 2018] – Philadelphia Gas Works’ (PGW) new, online, Supplier Diversity Management System is now live. The new system improves PGW’s ability to monitor and audit the quantity of work performed by contractors and sub-contractors, and will help track how much of the company’s future contracting goes to diverse vendors. In 2017, PGW spent $12.7 million of total contract opportunities with Minority-, Women-, Veteran- and Disabled-owned (MWVD) businesses, a number PGW is committed to increasing.

 

“PGW is committed to promoting equality in its contracting and purchasing activities, and this new Supplier Diversity Management System is part of that,” said Erica Patterson, Director of Contracts Management & Supplier Diversity. “We recognize that we have a significant impact on the local economy. That being the case, we have a responsibility to ensure that disadvantaged businesses, including those that are local, have the opportunity to compete for, and take advantage of, the economic opportunities we offer.”

 

The new system’s automated compliance features allow PGW to track contractor performance against diversity participation contract goals and to verify the activities and participation levels of MWVD sub-contractors. Many of these businesses are smaller, and it can be harder for them to secure contracts themselves for certain types of work. Sub-contracting is a great way for these small MWVD vendors to access procurement opportunities that they could not fulfill on their own. PGW’s Supplier Diversity Management System verifies that these sub-contractors are being properly utilized, and that prime contractors are fulfilling the terms, and accruing the benefits, of the procurement opportunities.

 

“Supporting small businesses in our community doesn’t stop at awarding a contract,” Patterson said. “We know that 78.5 percent of American businesses have fewer than 10 employees, which means that contract management and administration can be a real burden for them, and can act as a disincentive to businesses which might otherwise compete for projects. This Supplier Diversity Management System allows vendors to focus on the work and makes contract communication, compliance tracking and reporting straight-forward, accessible and efficient.”

 

Powered by diversity management software company B2GNow, the new cloud-based system will improve PGW’s contractor management process, and its user friendly interface means that vendors can spend more time and energy on their own operations, and less on reporting. Vendors can log in and submit their utilization reports, and PGW can track contract goals and participation, verify sub-contractor payments, set up automated compliance communications and customize reporting.

 

“We are dedicated to growing and sustaining an environment where diversity is valued, and our vendors represent the community we serve,” said Patterson.
 

For more information about doing business with PGW, visit pgworks.com. 


PGW Uses Open Data to Develop Interactive Infrastructure Upgrade Map

(PHILADELPHIA - May 22, 2018) --Today, PGW is launching its new, mobile-friendly Pipeline Improvement map. Available simply by texting the word WORK to the phone number 75308 the interactive mapping tool harnesses open city data to share up-to-date, street-level information on planned infrastructure projects, block by block. Residents and businesses can search by address or ZIP code to locate infrastructure upgrade projects that are ongoing, or which are scheduled within the next three months. In addition to locating project sites, the map will also tell users which phase of work the project is at, and what the projected timeframe for completion is. The new tool is housed on PGW’s website at pgworks.com/worksites and will also be distributed on Twitter, Facebook and Nextdoor. 

PGW is currently upgrading over 30 miles of its underground pipeline each year as part of its long-term infrastructure improvement program (LTIIP). The new mobile-ready Pipeline Improvement map has been developed because of the scale of this program, and because of its potential to impact the daily activities of residents and local businesses.

“PGW is committed to improving the way it communicates, and this new mapping tool is a key part of that initiative,” said PGW Director of Public Affairs Melanie McCottry. “We recognize that infrastructure projects can lead to a lot of questions. By making better use of available data and today’s online, interactive tools, PGW’s Pipeline Improvement map can answer many of those questions quickly, efficiently and on-the-go.”

The new Pipeline Improvement map allows people to better prepare for PGW projects that might interrupt their daily routine. It also facilitates better coordination. PGW’s infrastructure program often takes place at the same time and place as work from other utilities, city-wide street paving projects and Philadelphia’s continuing neighborhood development projects. This map allows users to identify which projects belong to PGW and who to contact with questions.

In conjunction with the map, residents can also use the hashtag #Conewatch on Twitter to receive worksite updates and follow the steps of a PGW infrastructure improvement project in real-time.

“People increasingly want self-service options that they can access instantly, without taking too much time out of their busy schedules,” said McCottry. “This innovative solution brings important information and actionable insight to customers, the broader utility industry, civic thinkers and policy makers.”

By making data easily accessible, PGW hopes to encourage residents and businesses to become more familiar with how their utility is performing, engage with their crews and contractors, and build tools and resources that ultimately make Philadelphia an even better place to live and work. Explore the map at pgworks.com/worksites.


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