PGW issues LNG sales request for proposal

OREANDA-NEWS. April 08, 2016. Municipal natural gas distribution company Philadelphia Gas Works (PGW) issued a request for proposals seeking to optimize revenues from its underutilized LNG assets.

The company expects to receive proposals from developers interested in LNG for bunkering, railroad and trucking operations, among others. Proposals will be accepted until 2:30pm EST on 23 May and vendor selection will be made in September. PGW may select more than one proposal.

"Due to PGW's customers using less natural gas over the past decade, PGW has available LNG storage capacity that is currently underutilized. PGW presently requires 50pc less LNG to support its worst-case scenario winter operating season", the company said in the request for proposal. PGW operates two plants in Philadelphia – Richmond and Passyunk. The two facilities provide natural gas to residential, commercial and industrial customers. PGW will commission a 21mn ft3/d LNG liquefier to be operational 1Q 2019 at its Richmond Plant.

The Richmond plant is located near the Delaware River, and adjacent to the Tioga Marine Terminal, which has potential for expansion to marine bunkering and barging operations using LNG as a fuel and cargo. Vendors who are interested in accessing the marine LNG fuel or export markets will be responsible for financing harbor-side infrastructure and developing agreements and logistics with the Philadelphia Regional Port Authority (PRPA) and the Delaware River Stevedores (DRS). Venders who are interested in developing a rail loading operation for LNG fueling would be responsible for developing agreements and logistics with the Philadelphia Beltline Railway.