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Chester PA: Penn America Energy Proposed LNG export project

Overview

Penn America Energy is proposing to build a Liquefied Natural Gas (LNG) project in Chester, PA on the Delaware River. Their purported plan is to build an LNG processing plant, known as a “liquefier”, and a deepwater port terminal with a dock in the river at the location of the shuttered Ford Motor Assembly Plant at 800 W Front St. The LNG would be exported in enormous ships that would travel down the Delaware River, through the Delaware Bay and overseas to “Europe, Asia or Latin America”.1 The company says, “Natural gas will be sourced primarily from Pennsylvania given the proximity to the Utica and Marcellus shale fields”.2

The fracked gas is proposed to be transported from the shale fields by an Enbridge (formerly Spectra) natural gas pipeline. A new greenfields pipeline connector would need to be built from the location of the Eagle Compressor Station in Chester Springs through Chester and Delaware Counties for about 5 miles to the plant in Chester.

Submitted File Requests

DRN has submitted several file requests with various agencies to learn more about what Penn America is planning because much of the available information is out of date or very limited in detail. For instance, the owner of the Ford Motor Company site has stated publicly the property is not for sale and is already being used by other facilities.3

Other information from news articles and reports:

Ford Motor Assembly Plant Site is reportedly 100 acres.4

It is a $4 to $8 billion project.5

They plan to process up to 1 B cubic feet of gas per day.6

They plan to export 7 million metric tonnes of LNG each year.7

They plan to operate for 20 years: 2023-2043.8

The Greater Philadelphia Lateral Expansion pipeline:

See http://www.spectraenergypartners.com/operations/new-projects/greater-philadelphia-expansion-project

About The Project

This Enbridge (formerly Spectra) pipeline project seems to be dormant. The website is outdated with an “in-service” date of 2019. Their open season was back in 2015. They would need to get easements for about 5 miles for a new connector pipeline of the existing market pipeline in Chester County. The Eagle Compressor, shown below on the map from the pipeline site, exist at 310 Fellowship Rd., Chester Springs, PA 19425. People have opposed it here.

Graphic shows map of the pipeline project
Map source

Political Maneuvering Behind the Scenes:

There is quite a bit of information in the copies of emails that were secured by WHYY through records requests, linked in WHYY article.9

The project’s plans lack public transparency. In a Feb. 23, 2021 email from Franc James to M. Doweary,10 Mr. James of Penn America stated that the Penn America LNG project had been “in development for the last 5+ years”.11

Challenges at the Ford Motor Co. Site:

Evonik Chemical appears to use the dock that has navigation channel access (google satellite). The river would need to be dredged if a new dock were to be built for the proposed terminal to access the now-deepened navigation channel.

It appears that M and M Industries and Dee paper use parts of the old Ford Motor site (google satellite).

The Ford site is reportedly 100 acres, undersized for the facilities and storage that would be needed for such a project.

Here is a google satellite map of the Ford Motor Assembly Plant site on the river:

Graphic - google satellite map of the Ford Motor Assembly Plant site

Chester Is an Environmental Justice Community

One of the first communities in the United States to use the term “environmental justice”, Chester has been struggling with environmental injustice that is best described by the community organizations who are active in the City. See the website of the Chester environmental justice group, Chester Residents Concerned for Quality Living (CRCQL). This is a community organization dedicated to protecting and empowering Chester and its residents to challenge a plethora of environmental burdens for decades. Founder Zulene Mayfield and the organization have pledged to fight the proposed LNG facility due to its inescapable dangers and polluting emissions that would add to the intolerable burdens from which they are already fighting to free their community.

Points About the Location on the Delaware River re. Ships

The ships that Penn America would use would likely be similar to the size of the ships that would use the LNG export dock (Dock 2) proposed for the Gibbstown LNG Export Terminal, across the river from Chester, about 1.9 miles north in New Jersey. These ships would be larger than any currently embarking from this far north on the river. In addition to other impacts associated with enormous vessels, these ships would have more explosive power should there be a release of the contents because they hold more product. One ship holds the equivalent energy of 69 Hiroshima bombs.13

Many permits would be needed for this type of project. So far, DRN file requests have resulted in no records located at PA DEP or DRBC. Other FOIAs and Right to Know Law requests submitted by DRN are pending.

Permits Needed Could Include:

  • U.S. Coast Guard
  • Army Corps of Engineers
  • Department of Energy
  • Federal Energy Regulatory Commission
  • Pipeline and Hazardous Materials Safety Administration
  • Delaware River Basin Commission
  • Pennsylvania Department of Environmental Protection – several permits needed depending on the site specifics (i.e. stormwater management) but these are key: Air Permit and perhaps Water Obstruction and Encroachment Permit.
  • Depending on the process they would use, may need: National Pollution Discharge and Elimination System permits (NPDES) discharge permits and water allocation permits from PADEP and DRBC.
  • May need municipal and county approvals.
  • Pipeline will need another set of permitting at various government levels/agencies.

Proximity to the Proposed Gibbstown LNG Export Terminal

The Ford Motor Assembly site in Chester is 1.94 miles from the proposed Gibbstown LNG Export Terminal (Dock 2) on the New Jersey side of the Delaware River.

A release of LNG to the atmosphere can impact a large area. When released, LNG, which is liquid methane, boils furiously into a flammable vapor cloud 620 times larger than the storage container. An unignited ground-hugging vapor cloud can move far distances,14 and exposure to the vapor can cause extreme freeze burns. If in an enclosed space, it asphyxiates, causing death.15 If ignited (ignition can be from a small spark or even the ignition switch on a car), the fire is inextinguishable. Fire companies are told to evacuate as quickly as possible and let it burn out on its own. A resulting pool fire is so hot that second degree burns can occur within 5 seconds for those exposed within .69 miles and 10 seconds of exposure could be fatal.16

Proximity to the State of Delaware, where LNG terminals are banned

Chester is approximately 3 miles from the Delaware State Line. Delaware would be exposed to the hazards of LNG, both the public health and safety issues and the environmental impacts. The State of Delaware Administrative Code prohibits the development of liquefied natural gas (LNG) terminals in the coastal zone in Delaware under current law.21 The Coastal Zone runs the length of the state, including all of the coast along the Delaware River and Bay. See: https://dnrec.alpha.delaware.gov/coastal-zone-act/

The Gas Industry’s Efforts

In 2022 the gas industry’s effort to build an LNG export terminal at Chester or in some other southeastern PA location took on new energy, fueled by the PA Legislature in support of fracking, fossil fuel development and market expansion. The Philadelphia LNG Task Force was formed with the passage by the Pennsylvania General Assembly of the PA LNG Export Task Force Act, signed into law by Governor Tom Wolf (see: https://bit.ly/3u5R702). The Task Force started up in January 2023 with a little known meeting of its members, named in the Act, held before the newly elected Representatives had been sworn in. This is important because a new Democratic majority was elected to the Pennsylvania House of Representatives but the chairperson was elected by a vote of the members without the new House President’s appointee included because the meeting was held prior to the inauguration. The chair, Rep. Martina White, represents District 170 which includes portions of Philadelphia. She is the Republican Caucus secretary.

The Philadelphia LNG Task Force targets southeast Pennsylvania in the Delaware River Watershed as an “LNG export hub”, most specifically focusing on Chester, the only location where an LNG export terminal (Penn America Energy LLC) was being proposed. From the start, the Task Force displayed a lack of transparency, shutting out the very communities that would be exposed to the pollution and danger of an LNG processing plant and export terminal.

Representative Joe Hohenstein (District 177, serving Philadelphia County and the Delaware River Port region, www.pahouse.com/Hohenstein) was appointed to the Task Force in 2023 by the new Speaker of the Pennsylvania House of Representatives when the Democratic majority was seated. With practically no public notice, the first Task Force hearing was held on April 23 at the Philadelphia Navy Yard. Rep. Hohenstein held a press conference with community members outside of the hearing location to draw needed public attention to the little-known Task Force meeting (See Press Release under Supporting Documents). Rep. Hohenstein worked with community members to organize an effort to open the Task Force up to the public, inform the public of the hearing, and arrange for independent experts and community representatives to speak at the hearing instead of the Task Force’s hand-picked speakers, all of whom were biased towards LNG export. At the last minute, Chair White of the Task Force barred all the community and independent expert speakers that were slated to testify and the public was turned away from even entering the hearing room.

At the Task Force’s May hearing, Pennsylvania State Representative Carol Kazeem (District 159, serving Delaware County, including Chester, https://www.pahouse.com/Kazeem/) testified eloquently for her District, but members of the public or local community were not allowed to speak. Rep. Hohenstein arranged for a community-accessible hearing location for the Task Force’s August hearing.

DRN & Philadelphia Organizations

DRN, Philadelphia organizations, and community members from throughout the southeastern PA region worked with Chester Residents Concerned for Quality Living (CRCQL) and their chairperson Zulene Mayfield, to mount a powerful unified public rebuke of the Task Force’s goals at the August hearing in Chester on the Widener University campus. Zulene Mayfield (see: https://www.muralarts.org/artist/zulene-mayfield/ ) and Stefan Roots, Chester City Council member and Democratic mayoral candidate for the City of Chester (and Chester City mayor as of January 3, 2024, see: https://en.wikipedia.org/wiki/Stefan_Roots) spoke on the record before the Hearing Task Force for those that would be impacted by an LNG facility. A statement by Fermin Morales, a member of the Philadelphia community group Philly Boricuas and a union electrician for IBEW Local 98, was read into the record by Zulene Mayfield because he wasn’t available to attend.

The regional communities united and turned out in force at the public hearing; residents and community leaders filled the hall at Widener University to standing room only with a rambunctious rally beforehand in front of the meeting hall. A press conference was held after the Hearing by organizations from Southeastern PA with Pennsylvania State Representative Joseph Hohenstein, Pennsylvania State Representative and Chester resident Carol Kazeem, and people who testified or were supposed to testify – including Zulene Mayfield, Stefan Roots, Earl Wilson of the Eastwick Friends and Neighbors Association, Philadelphia and Shawmar Pitts of Philly Thrive, Philadelphia (see Press Release under Supporting Documents).

The effect of the united front against an LNG facility in Chester (or anywhere in the Delaware River ports) was clear – the Task Force could no longer claim they had community-level support. However, the Task Force continued to move ahead with its planning. The Task Force released their recommendation report on November 3 after it was approved at a Task Force public meeting livestreamed on YouTube. Representative Joe Hohenstein and Task Force member was the lone “no” vote on the Report (see DRN press release under Supporting Documents).

The Philadelphia LNG Export Task Force Report

In a press statement issued Nov. 3, DRN dismissed the Task Force Report as inaccurate, misleading, and an affront to Delaware River communities. DRN condemned the shocking and upfront biased omission of the testimony of impacted community members who testified at the LNG Task Force Hearings as insulting and a grave mistake. The report contained no mentions of or quotes from Pennsylvania Representative Carol Kazeem, who represents the District where the LNG terminal would most likely be located, community representative Zulene Mayfield of the Chester Residents Concerned for Quality Living (CRCQL), or Chester City Councilman Stefan Roots. All three were invited speakers from Chester who presented testimony before the Task Force at their public hearings and all spoke on the record.

2024 Update

As of January 2024, no new actions have been taken to advance the development of an LNG facility and/or export terminal in Chester or any other location in southeastern PA. There has been no filing submitted by Penn America Energy with the Federal Energy Regulatory Commission as was promised by the company each year since 2022 and most recently was slated for 2024. This would be a first step towards building an LNG terminal. There has been no news announcements of funding or other support for the proposed Penn America project. DRN will continue to work shoulder to shoulder with CRCQL and the other engaged community groups in our broad network to block any attempt to build LNG export terminal(s) anywhere in the Delaware River Watershed.

For more information on Zulene Mayfield and CRCQL go here for the We Act story board: https://storymaps.arcgis.com/stories/a72d37bbce71473195da5d2d86a102d2

U.S. Dept. of Energy’s LNG Export “PAUSE”

On January 26th, President Joe Biden announced a pause on approval of new liquefied natural gas (LNG) exports from all U.S. ports. Specifically, the White House announced that U.S. Department of Energy (DOE) authorization of new LNG export projects are put on hold while the climate and community impacts of these projects are assessed by the agency during the public interest determination process. The pause applies to all new and pending applications for LNG exports to “non-Free Trade” countries. The President’s announcement read in part: “During this period, we will take a hard look at the impacts of LNG exports on energy costs, America’s energy security, and our environment. This pause on new LNG approvals sees the climate crisis for what it is: the existential threat of our time.”

The LNG “PAUSE” Continues

The next step with the LNG Export Pause is for DOE to issue a proposed rulemaking open to public comment that would lay out how DOE would carry out the public interest determination process regarding LNG export’s impacts as they consider applications for export to non-Free Trade countries. DRN and allies support that DOE must institute an assessment process that considers LNG’s full life cycle from cradle to grave, starting from fracking at extraction wells through the complete supply chain to end use. The analysis must consider environmental justice and energy justice implications and include the cumulative public health impacts, environmental impacts including climate and pollution impacts and costs, and economic impacts such as the price of domestic gas for consumers. DRN will be working to encourage wide and deep public participation in the DOE public rulemaking process.

The LNG Pause is temporary and politically fragile. There is bipartisan blowback, including from U.S. Senators Bob Casey and John Fetterman from Pennsylvania and Governor Shapiro stated he hoped that the “pause is limited”. Sixteen Republican Attorneys General have sued the Biden Administration to overturn it; bills have been introduced in Congress to stop it with the Pause becoming a potential bargaining chip in various political and government dealings.

DRN supports the Pause to be made permanent and for the LNG facilities now operating across the nation, including those concentrated on the Gulf Coast where most LNG is exported, to be stopped as our nation and the world move to truly clean, renewable and efficient energy sources that do not degrade or pollute our environment or quality of life, harm public health, or release greenhouse gases that heat the atmosphere and fuel the climate crisis.

Reference