The CEO of Penn America Energy Holdings, Franc James, recently met with White House officials to discuss the company’s long-standing proposal to construct a liquefied natural gas (LNG) terminal near Philadelphia. This meeting signals a renewed push for the project, which aims to export 7.2 million tons of LNG annually to European and Asian markets, despite facing significant local opposition.
Key Takeaways
- Penn America Energy Holdings is reviving plans for an LNG export terminal near Philadelphia.
- CEO Franc James met with White House officials to discuss the project.
- The project faces an “uphill battle” due to local opposition and permitting challenges.
- Several potential sites are under consideration, including Trainer, Marcus Hook, and Eddystone.
White House Meeting Signals Renewed Push
Franc James, CEO of Penn America Energy Holdings, confirmed a meeting with White House officials on Tuesday, June 3rd. James stated the purpose of the meeting was to “provide intelligence” regarding the proposed LNG terminal. This engagement follows the company’s decision to put plans on hold during the Biden administration’s pause on LNG export approvals. The project, which was in its “fetal stages” during the Trump administration, is now being revived, potentially with renewed political backing.
Project Details and Challenges
Penn America Energy Holdings aims to export 7.2 million tons of liquefied natural gas (LNG) per year. While the original site was in Chester, Pennsylvania, James indicated that several other locations are being considered, including Trainer, Marcus Hook, and Eddystone. Building new energy infrastructure in the densely populated eastern Pennsylvania region has historically faced strong local opposition. Analysts, including Alex Munton of Rapidan Energy Group and Ira Joseph of Columbia University, agree that the project faces an “uphill battle” to meet its target of getting LNG on the water by 2030, citing significant objections from local opponents and the extensive time and money required for development.
Political Landscape
The project has received support from U.S. Senator Dave McCormick, a Republican from Pennsylvania. Democratic Senator John Fetterman has not yet publicly expressed a position on the project. The potential for a new LNG terminal in Pennsylvania could become a contentious issue in this battleground state, especially with Democratic Governor Josh Shapiro up for reelection next year. Former President Trump has voiced his support for expanding gas pipelines and the LNG industry, which could further complicate the political dynamics surrounding the project.
