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Press Release

STATE AWARDS $2 MILLION FOR INVESTMENT IN SOLAR AT PGW PASSYUNK SITE

Onsite Electricity Source Would Combine Natural Gas with Solar; Potentially Delivering Significant Cost Savings and Environmental Benefits

PHILADELPHIA (August 15, 2019) – PEC LLC, the entity selected as PGW’s P3 partner to build new liquefied natural gas (LNG) infrastructure and to sell LNG to regional customers from PGW’s Passyunk LNG facility, has been selected for a grant of $2 million from the state’s Redevelopment Assistance Capital Program (RACP) to install solar photovoltaic equipment at the South Philadelphia LNG plant. The potential solar energy savings could reduce energy costs at the facility and increase the return on investment of the sale of LNG from the site, increasing revenue. 

Solar panels, or photovoltaic panels, are designed to collect sunlight and turn it into energy. Less reliance on the electric power grid ensures a safe, robust and redundant operational capability for the city. 

“PGW is uniquely positioned as a leader in Philadelphia’s energy innovation space. Our customers and our city benefit from efforts like these that explore how our resources can respond to the needs of today’s consumers. Consumers want affordable, accessible and environmentally responsible energy service,” said Ray Snyder, PGW Senior Vice President of Gas Management. “We look forward to working with PEC to explore the possibility of solar at Passyunk.”

PEC’s proposed solar installation will be the second solar project considered for the PGW Passyunk location. Earlier this year PGW received approval to move ahead with the installation of a 150 KW solar array at Passyunk to offset electricity being used annually by the existing plant. Both efforts are demonstrations of PGW’s continuing leadership of ensuring energy access to all of Philadelphia that is innovative, affordable, energy efficient and sustainable.

“As the Chair of the Philadelphia Gas Commission, I am encouraged by support from the Commonwealth for another solar installation at this location,” said Philadelphia At-Large Councilmember Derek Green. “This proposed solar project would be another win for PGW and ratepayers by providing another way to save money, while also promoting sustainable, affordable energy.”

After City approval this past June, PEC is moving forward with its plans to build new liquefaction and truck loading facilities at the location 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 PEC 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.

 

PGW’s Passyunk Plant, located in South Philadelphia, has had an LNG facility on site since 1971, and currently operates as a natural gas distribution, liquefied natural gas storage and vaporization facility.

 

About RACP:

The Redevelopment Assistance Capital Program (RACP) is a Commonwealth grant program administered by the Office of the Budget for the acquisition and construction of regional economic, cultural, civic, recreational, and historical improvement projects. RACP projects are authorized in the Redevelopment Assistance section of a Capital Budget Itemization Act, have a regional or multi-jurisdictional impact, and generate substantial increases or maintain current levels of employment, tax revenues, or other measures of economic activity. RACP projects are state-funded projects that cannot obtain primary funding under other state programs.

 

About PGW’S Passyunk Plant:

PGW’s Passyunk Plant, located in South Philadelphia, has had an LNG facility on site since 1971, 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. It manages a distribution system of approximately 6,000 miles of gas mains and service pipes supplying approximately 500,000 customers. PGW's operations are managed by a non-profit corporation, the Philadelphia Facilities Management Corporation (PFMC). More information about the company is available at www.pgworks.com. 

 

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