Penn America Energy Holdings CEO, Franc James met with US officials at the White House this week to try to advance the company’s 7.2 mill tonnes per year stalled Pennsylvania LNG export terminal project.
The company has been planning to develop the terminal near Philadelphia for many years but is now considering several other locations apart from the original site in Chester, Pennsylvania, according to a source talking with Reuters.
Once an oil refining centre, the Delaware River has seen plants come and go in recent decades, as the industry concentrated its efforts along the US Gulf Coast.
For years, local and state officials have tried to leverage the abundance of natural gas in western Pennsylvania, but building new infrastructure in the densely populated eastern part of the area has always been met with local opposition.
James said that he had worked with President Trump during his first term when the project was "in the fetal stages" but the company put the plans on hold when former President Joe Biden paused approvals of LNG exports in early 2024.
"Developing a project in the Northeast is quite different than the Gulf Coast, Louisiana and Texas, so it requires a great deal of support, not only politically in the state, but also with communities ... in terms of pipeline transmission as well as ... along the Delaware River," he told the newswire.
Nearby sites in Trainer, Marcus Hook and Eddystone are also being considered, James said.
The project has support from US Senator Dave McCormick, a Republican from Pennsylvania but has been opposed by Senator John Fetterman, a Democrat. It would need federal, state and local permits.
Analysts said the export plant will have an uphill battle, especially to get it commissioned by 2030, which James said is the target.
Alex Munton, director of global gas and LNG research at consulting firm Rapidan Energy Group, said the proposal has faced significant objections from local opponents. "It requires a lot of time and money, and therefore political support alone is not enough," he told Reuters.
Ira Joseph, an LNG market expert and senior researcher at Columbia University, agreed. "When you compare it to the opportunities out there for other LNG projects, it's not high on the list in terms of probability."
Penn Energy has claimed that its unique location distinguishes the project in two cost-competitive ways. It is close to the vast, low-cost Marcellus natural gas resources, and, when compared to US Gulf Coast projects, it offers shorter shipping distances to Europe and other key LNG markets.
In addition, the Delaware River shipping channel has been deepened to accommodate larger ships. (June 5, 2025, Source: https://lngjournal.com/index.php/latest-news-mainmenu-47/item/113725-delaware-river-lng-export-terminal-push)
UNITED STATES - LNG - SUPPLIES - IMPORTS - EXPORTS