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For Immediate Release:
2006-02-16
For More Information:
Contact Nathan Willcox
(215) 732-5897

Philadelphia City Council Passes Resolution Opposing PGW’s Risky LNG Plans

PHILADELPHIA—Philadelphia City Council voted 12-2 today in favor of a resolution announcing the Council’s intended opposition to any liquefied natural gas (LNG) import facility plans within the city’s limits. Philadelphia Gas Works’ (PGW) has been promoting plans for an LNG import facility in northeast Philadelphia, despite the serious public safety concerns associated with the plan and widespread opposition from neighborhood associations and environmental groups.

“PennEnvironment applauds City Council for recognizing the public safety threat posed by LNG, and for sending a clear message to PGW that their dangerous plan is not wanted,” said Nathan Willcox, energy advocate with PennEnvironment. “If an accident were to occur on an LNG tanker on the Delaware, tens of thousands of Philadelphians would be at risk.”

The resolution was introduced by Councilwoman Krajewski, and co-sponsored by Council President Verna and Councilman DiCicco. All three represent districts along the Delaware River, and in a recent opinion piece, cited the “overwhelming and fierce opposition and uproar from our constituents” as key in their decision to author and introduce the resolution.

PGW has announced its intentions to build a liquefied natural gas import facility in the Port Richmond neighborhood of northeast Philadelphia, which would serve as a docking station for LNG tankers traveling from the Atlantic Ocean and up the Delaware River. Liquefied natural gas, or LNG, is natural gas that has been converted to liquid form by cooling it to negative 260 degrees Fahrenheit. This enables energy companies to more economically transport greater quantities of natural gas, as the LNG is 1/600th the volume of the substance in its gaseous form.

However, LNG import facilities and tankers pose a significant public safety threat. Specifically, a study done for the U.S. Department of Energy found that if a leak from an LNG tanker were to occur due to an accident or attack, a resulting explosive fire could result in “major injuries and significant damage to structures” within a third of a mile from the spill site, and “potential for injuries and property damage” up to one mile from the spill site. Tens of thousands of people live within the one mile risk area of the Port Richmond site, as well as tens of thousands more citizens in the Philadelphia neighborhoods along the Delaware River transport route.

“In the 1970s—long before 9/11and the terrorist threats we face today—Congress said LNG import facilities were too dangerous to be cited in large metropolitan areas,” said Willcox. “The risk is even greater than it was thirty years ago, yet PGW still thinks a facility can be built while protecting the public safety of Philadelphians. It simply doesn’t add up.”

While spending over $2 million to sell its LNG plan, PGW has promoted the idea that this plan will lower Philadelphians’ gas bills—but this claim is misleading at best. The utility has said that the LNG facility could bring in $25 million annually, which works out to a roughly $3/month reduction for the average home heating bill in Philadelphia. Furthermore, the $3 figure assumes that PGW passes along all LNG revenues to ratepayers, and does not account for who would pay for the numerous necessary public safety measures. Municipal officials in Boston have determined that LNG tankers pose enough of a threat that the city must use undercover investigators at the docking station to guard against terrorist attacks, deploy an underwater dive team to flag underwater hazards, and require police and the U.S. Coast Guard to provide ten boats to escort each LNG tanker into port. All of these security measures would carry significant price tags for Philadelphia—a burden that could be placed on the city’s taxpaying citizens.

“Philadelphia ratepayers should not be footing the bill for a proposal that has more public safety questions than PGW has answers,” Willcox said. “Numerous studies have shown the safety risks of LNG import facilities to surrounding communities—risks that the residents of Philadelphia should not have to live with, much less pay for.”

Neighborhood associations from Bridesburg to Bella Vista have held neighborhood meetings on the issue, and the Old City Civic Association has submitted a letter to City Council officially opposing any plans for an LNG import facility in Philadelphia.

Today’s Council vote was critical because PGW has said that the utility needs the approval of Philadelphia City Council to proceed with construction of the new LNG facility. Today’s resolution was not binding, though, and PennEnvironment and other public interest advocates will continue to strengthen community opposition to PGW’s dangerous LNG plan. Additional Council hearings could be held if and when PGW ignores today’s clear message and submits an official proposal to City Council.

“Despite public opposition to the idea of an LNG import facility in Philadelphia, some officials have said they are waiting for an official PGW proposal before taking a position,” said Willcox. “But given the inherent threat posed by any LNG import facility, the details of PGW’s proposal won’t change anything—these facilities simply do not belong in large metropolitan areas, and we applaud City Council for recognizing that today.”