Philadelphia Gas Works Proposed LNG Expansion

Background

Philadelphia Gas Works (PGW), the natural gas supplier for Philadelphia region consumers, operates under the Philadelphia Gas Commission (PGC).

PGW is planning to expand its LNG facility, which operates as a “peaker plant”, capturing natural gas when the price is lower, liquefying it at a “cold box” plant, which is an LNG liquefier, in Philadelphia, and using it when the price of gas increases seasonally. The concept is to save consumers money on the price of gas.

PGW is considering expanding the LNG produced by building a new liquefier at the Port Richmond facility located at 3100 E. Venango St, Philadelphia, PA. The plan is produce more LNG and to sell it off to buyers as a revenue producer. The project was first proposed to be funded in PGW’s Fiscal Year 2026-2027 budget but the PGC opposed it, the Public Advocate, Robert Ballenger of the city’s Community Legal Services, recommended against the expansion, and the public spoke up against it.

Big questions include questions about the need for any major upgrades or repairs at the current LNG liquefier (the “useful life” of the existing facility), the lack of verified economic benefit, and the polluting emissions that would result from an expanded liquefaction plant and increased fossil gas usage, harming public health and releasing increased greenhouse gas emissions. The budget request was tabled .

As reported by WHYY: “The proposal would increase PGW’s capacity to liquefy and store natural gas by 1 billion cubic feet, about one-third larger than its current 2.2 billion cubic feet processing facility. Instead, the commission approved $1 million for an environmental impact study and $4 million for an engineering study.”

While agency studies are ongoing, PGW had previously requested responses from companies interested in a Public Private Partnership (3P) , which is under negotiation now. If a 3P is agreed upon, the new liquefier plant would be funded through that mechanism, and there would be no need for the $182 million budget request.

DRN has filed Right to Know Law requests with PGW to get more information about the proposed project, the ongoing studies, and the 3P negotiations and outcome.

Files were received in August 2026 and are posted in their entirety below.

DRN will continue to update this matter as events occur and files are obtained.