U.S. Plant Looks to Tap into LNG Bunker Market

by Ship & Bunker News Team
Thursday April 7, 2016

The Philadelphia Gas Works (PGW) says it has ambitions of expanding into supplying liquefied natural gas (LNG) bunkers, among other uses, through a $120 million expansion plan at its LNG plant in Pennsylvania, U.S., local media reports.

PGW says that it believes that there is a growing demand for LNG as fuel for ships, as well as long-haul trucks, trains, and remote power-generation facilities, which led the PGW on Tuesday to issue a call for proposals from gas-marketing companies to both buy and market LNG, potentially including ship-loading facilities on the Delaware River.

The plant's expansion, which is said to be intended for completion by early 2019 at the existing Port Richmond site, would boost the plant's current capacity with twin insulated LNG tanks of a combined 50 million gallon capacity.

Craig White, President and CEO of PGW, says the company is looking to such growth opportunities in order to offset a long-time decline in consumption by its current customer base.

"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," said White, adding that he believes the LNG expansion could garner incremental revenue of approximately $15 million per year - double the project's debt service.

The PGW's request calls for proposals is said to close May 23, with the PGW planning to select a vendor by September 1, 2016.

In February, Ship & Bunker reported that Harvey Gulf International Marine, LLC (Harvey Gulf) had completed the first LNG bunkering of a vessel from its newly completed LNG terminal facility, located at its Port Fourchon, Louisiana operation base, the first such facility in North America.