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Philadelphia LNG Export Task Force Issues Report On The Best Ways To Increase Exports Of PA's Natural Gas; Minority Report Rebuts Need For LNG Facility, Outlines Impacts

On November 1, the House Philadelphia LNG Export Task Force, chaired by Rep. Martina White (R-Philadelphia), adopted a final report on the best and safest way to increase the export Pennsylvania's natural gas overseas.

Rep. Joe Hohenstein (D-Philadelphia), leader of the Democrat members of the Task Force, issued a minority report adding the economic viability of an natural gas LNG facility and its potential impacts upon the community.

Copies of the majority report were not posted yet for the public, but Rep. White outlined several recommendations in a press release--

-- Streamlining and improving the permitting process in Pennsylvania to balance regulatory considerations with the need for an effective and efficient permitting process to attract investment in Pennsylvania.

-- Facilitating pathways to support the current skilled labor workforce, and workforce of the future, by promoting educational opportunities and partnerships with the industry, institutions of higher education, and K-12 schools—especially those located in the Greater Philadelphia area and surrounding communities.

-- Calling upon Congress to modernize the Jones Act to facilitate the transport of LNG between U.S. ports.

“Our abundant natural gas resources not only fuel economic growth within the Commonwealth but also offer us a unique opportunity to meet growing energy demand across the globe, while creating tens of thousands of jobs and generating billions of dollars in yearly economic activity that can benefit communities in the Southeast region,” said Rep. White. “Now, after several hearings in which we heard from experts and gathered volumes of information, our task force adopted a final report on how Pennsylvania can best manage the safe and secure export of this crucial commodity while supporting Pennsylvania workers.”

“I applaud policymakers for embracing this opportunity to strengthen Pennsylvania's standing as a leading energy supplier during this critical time,” said Toby Z. Rice, president and chief executive officer of EQT Corporation. “For the first time in decades, the number of people without access to electricity increased in 2022. The task force’s report is clear – making clean, affordable, reliable Appalachian natural gas available on a global scale will increase energy security, decrease global emissions and promote family-sustaining jobs across the Commonwealth. We have an incredible opportunity before us to unleash U.S. LNG from Pennsylvania, which will not only address the global energy shortage but generate thousands of jobs for Pennsylvanians.”

Jim Snell, business manager, Steamfitters Local 420, also commented on acceptance of the report. “I am thrilled with the adoption of the final report from the Philadelphia LNG Export Task Force. This is an important step toward realizing the economic benefits of an LNG export terminal in our region, which can create thousands of well-paying union jobs and support the hard-working men and women in our community.”

Minority Report

Rep. Joe Hohenstein (D-Philadelphia) said Rep. White accepted the minority report into the official record. Read press release here.

“This is a complex topic with many stakeholders holding a variety of views and strong opinions,” Rep. Hohenstein said. “And it is my belief that this report accurately addresses the concerns with placing an LNG facility within the geographical area covered by the Philadelphia Port, resulting in the conclusion that there is simply no suitable location for an LNG facility in Philadelphia or Southeastern Pennsylvania.

“The Commonwealth should be engaged in a transition away from fossil fuels because of the need to address climate change," said Rep. Hohenstein. "As such, I plan to propose the formation of a task force to review the state’s energy policy and to map a path toward a future with family sustaining jobs in an energy sector that does not produce dangerous pollution or carbon emissions.”

The minority report largely summarizes testimony presented to the Task Force about the only potential site for a natural gas LNG plant identified so far and that is in Chester, Delaware County.

Among the findings in the minority report are--

-- Many Other Projects In Development: There is no need for additional LNG facility proposals. The Oil and Gas Journal predicts increased exports from the Gulf Coast as new projects, already in development for many years, come on line.

-- No New Facilities Needed To Meet LNG Demand Due To War: No new LNG facilities are needed to meet the demand that officials say Europe requires during the current military crisis.

-- Likely To Be LNG Glut Globally: Economists predict that the increased exports don’t have a positive sustainable financial position considering the market outlook for LNG in the coming years. There is more likely an LNG glut globally than a need for more.

-- Unneeded Facilities Will Stand Unused: The Institute for Energy Economics and Financial Analysis reports by 2030 the rejection of LNG by current buyers could leave unneeded infrastructure standing and unused. It is not a viable pathway to a thriving port here on the Delaware River and it is not a sound economic investment for Pennsylvania.

-- LNG Ships Too Big For Delaware River: Limits on the size of shipping vessels could markedly reduce the facility’s operational capacity. Modern LNG vessels are significantly larger than the average tankers that traverse the Delaware River to ports in the Philadelphia region.

-- New Pipelines Needed: New or expanded pipeline delivery systems would be required to bring natural gas to Southeastern PA. The Penn America plan for a Chester LNG facility would likely require an expansion of one of the existing market pipelines that currently bring gas to the Marcus Hook region. Additionally, there would need to be a new connector pipeline built from the current line to Chester.

-- Cost Of Domestic Natural Gas Driven By LNG Exports: The cost of residential home heating with natural gas markedly increased in 2022 since the Ukraine war began. Economists point out that the price spike is linked clearly to U. S. exports of LNG to Europe, where producers have gotten about seven times more profit for the gas.

-- Natural Gas Companies Seek Highest Profits And That’s Overseas: Consumers at home are not capable of winning in a bidding war with overseas buyers. The reason LNG companies are exporting overseas is not to be patriotic or generous, it is to fetch the highest profits possible.

-- Chester Is An Environmental Justice Zone Already Polluted: The proposed LNG facility falls within a documented Environmental Justice Zone in the City of Chester. The Chester community already experiences high levels of air pollution, and the introduction of an LNG facility will further increase residents’ exposure to pollutants.

-- Additional Safety Risks From LNG Facilities: The safety risks involved in operating a LNG facility in a populated area, the pollution from the facility will further put residents’ and workers’ health at risk. Air pollution is a known cause of adverse human health conditions

-- Homes, Businesses, Churches Destroyed In Chester Would Have Major Impact: The number of homes that would be destroyed in order to build the proposed facility and buffer zone would be over 800, in addition to three churches, a daycare center and numerous businesses.

-- Methane Emissions Would Worsen Climate Change: Methane, released by LNG throughout its life cycle, is a huge contributor to the greenhouse gases that are warming the atmosphere, exacerbating negative effects of climate change.

Minority Report Conclusion

“The bottom line is, there is simply no suitable location for an LNG facility in

Philadelphia or Southeastern Pennsylvania.

“Even before considering the impacts to neighboring communities and the environment, the obstacles are daunting. There is no space at the proposed site, in addition to a restrictive covenant that provides a significant legal obstacle.

“The economics of this project are also in question over the long-term, taking into account the number of LNG export terminals in the queue globally and anticipated future declines in natural gas demand.

“The proposed site would require substantial infrastructure investments in pipelines and dredging.

“In addition to these issues, the impacts to the surrounding community would exacerbate decades of environmental injustice in this area. There are 70,000 people living within a 3-mile radius of the proposed site in Chester.

“For all of the reasons stated above, we make the recommendation to the General

Assembly against any further resources being committed to investigating an LNG facility in Philadelphia or elsewhere in Southeastern Pennsylvania.

“The sooner we recognize reality, the sooner we can take the steps we need to continue to secure Pennsylvania’s energy independence in ways that benefit all Pennsylvanians.”

Click Here for a copy of the minority report.

Reaction

Joseph Otis Minott, Esq., Clean Air Council Executive Director and Chief Counsel, released the following statement on the reports--

“Cramming a dangerous LNG export terminal into our Southeastern Pennsylvania riverfront risks the health and safety of many surrounding neighborhoods, and the financial stability of our region.

"The terminal would lock the region into dirty and outdated fossil fuels for decades, further fueling the climate crisis when we know we need to be cutting climate pollution as much as possible.

"Simply put, the LNG Task Force Report is gas industry marketing propaganda that is out of touch with the community’s priorities and economic realities.

"The Council lauds Representative Hohenstein for consistently seeking transparency from the Task Force and championing public input in the conversation.”

NewsClip:

-- Environmental Health News: Majority-Black Pennsylvania Community Fights Back Against Proposed $6 Billion LNG Natural Gas Terminal [Chester, Delaware County]

Related Article - LNG Task Force:

-- 150+ Residents Of Chester Opposed To An LNG Natural Gas Export Facility Proposed In Their Community Let Their Feelings Be Known To The House Philadelphia LNG Export Task Force [PaEN]

Upcoming Events:

-- PA League Of Women Voters, University Of Pittsburgh Graduate School Of Public Health Nov. 14 Shale Gas & Public Health Conference [PaEN]

-- University Of Pittsburgh Studies Of Shale Gas Development Health Impacts To Be Discussed At Nov. 14 Joint Meeting Of DEP Citizens Advisory Council, Environmental Justice Advisory Board [PaEN]

PA Oil & Gas Industry Public Notice Dashboards:

-- Pennsylvania Oil & Gas Weekly Compliance Dashboard - Oct. 28 to Nov. 3 - Fire At PA General Energy Shale Gas Well Pad; 5 More Abandoned Conventional Wells; Replugging Shale Gas Well [PaEN]

-- PA Oil & Gas Industrial Facilities: Permit Notices/Opportunities To Comment - November 4 [PaEN]

-- DEP Posted 57 Pages Of Permit-Related Notices In Nov. 4 PA Bulletin [PaEN]

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