Council Approves $60 Million LNG Plant in South Philly Over Climate Activist Opposition

Over objections of climate activists, Philadelphia City Council on Thursday approved a deal. It is with a developer who will build a $60 million liquefied natural gas or LNG plant on city land. It will be generating at least $1.35 million in profits that advocates say will help reduce residential heating bills.

Council, in a 13-4 vote, endorsed the Philadelphia Gas Works’ deal with Liberty Energy Trust. It is a Conshohocken firm that would build the LNG production unit at PGW’s Passyunk Plant. It will pay the city-owned utility annual fees and profits. PGW and the Gas Commission said the revenue would help reduce the need to raise customer rates.

Environmental groups, including the Clean Air Council and PennEnvironment, opposed the plant.

The activists said there were unanswered questions about what the new Passyunk Energy Center’s impact on the environment will be. They have also opposed new fossil-fuel infrastructure because it enables the production of more fracked natural gas from Pennsylvania’s Marcellus Shale region when they say the nation should be investing in renewable energy.