Developing more LNG export capacity in the Mid-Atlantic region would appear to make logistical sense, given its proximity to Marcellus/Utica production and easy access to all-important European markets. But physical constraints at the Cove Point LNG site in Maryland limit the potential for an expansion there, and efforts to advance projects along the Delaware River near Philadelphia have stalled out. Or have they? As we discuss in today’s RBN blog, Penn America Energy’s moribund plan for an LNG export terminal just downriver from The City of Brotherly Love seems to have gained new life with a new company name and a new site — in Eddystone Borough, PA.
Think back to just a couple of years ago, when the Biden administration’s “pause” on new Department of Energy (DOE) approvals and permits for exporting LNG to countries without Free Trade Agreements (FTAs) threw a wet blanket on what had been an on-fire market for new LNG export projects. During the pause, the pace of new Sales and Purchase Agreements (SPAs) slowed to a crawl, as did new-project announcements. All that changed early last year, when the Trump administration ended the pause and made clear it would do all it could to facilitate the development of new LNG export capacity.
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Since then, nine projects have reached a final investment decision (FID): Woodside’s Louisiana LNG, another expansion at Cheniere Energy’s Corpus Christi LNG, VentureGlobal’s CP2 LNG Phase 1 (and, later, Phase 2), NextDecade Corp.’s Rio Grande LNG Train 4 (and then Train 5), Sempra’s Port Arthur LNG Phase 2, Catarus Energy’s Commonwealth LNG, and — most recently —Delfin FLNG, which will be the U.S.’s first floating LNG export facility. Together, these projects will add just over 80 million tons per annum (MMtpa) of LNG export capacity, or about 11 Bcf/d, by the early 2030s.
Just as there are concerns that the ongoing buildout of data centers may leave the U.S. with a big surplus of “compute” capacity for AI, there are worries that too much LNG export capacity is being added and that markets in Europe, Asia and elsewhere will not be able to absorb all the LNG the new terminals will be capable of sending out. But that hasn’t stopped developers from planning still more LNG export capacity — for example, Glenfarne Group may be nearing FID on its Texas LNG project in Brownsville, TX, Cheniere and VentureGlobal are considering possible expansions and, as we will discuss today, the developer of a long-planned LNG export terminal near Philadelphia apparently “won’t back down” in its efforts to get its project sited and built.
When we last blogged about a possible Philly-area project back in 2022, the developer was named Penn America Energy LLC and was considering four possible sites along the Delaware River. Our thought at the time was that it would likely pick one in Marcus Hook, PA, which is already the site of an Energy Transfer marine terminal that (among other things) exports LPG and ethane. However, Penn America tried to locate the project in nearby Chester, PA, and encountered strong local opposition; the Biden-era pause also set back the company’s push to secure long-term offtake deals to underpin the multibillion-dollar project.
More recently, right-to-know (RTK) requests and related efforts by Delaware Riverkeeper, a regional environmental group, indicated that Penn America’s development team has rebranded itself as Eddystone Energy LLC and is working to win over state and local support for a project called Eddystone LNG in Eddystone Borough, a tiny riverfront municipality (1.5 square miles, 2,500 people) just northeast of Chester and a couple of miles southwest of Philadelphia International Airport. Despite its small size, Eddystone in the early 1900s was the home of the world’s largest steam locomotive manufacturing plant and, during World War I, the largest rifle-making factory in the U.S. Oh, and Jennifer Aniston lived in the borough briefly in her youth and attended Eddystone Elementary School.
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About the song
“I Won’t Back Down” was written by Tom Petty and Jeff Lynne, and it appears as the second song on side one of Tom Petty’s debut solo album, Full Moon Fever. Released as the first single from the album, the song went to #1 on the Billboard Mainstream Rock chart and #12 on the Billboard Hot 100 Singles chart. The video for the song features Petty with fellow Heartbreaker Mike Campbell, album collaborator Jeff Lynne, fellow Wilbury George Harrison, and a drummer named Ringo Starr. Campbell’s guitar morphs into Harrison’s Magical Mystery Tour Stratocaster during the slide solo of the song. “I Won't Back Down” is the song that Sam Smith’s hit, “Stay With Me,” lifted the chorus section from, resulting in Petty and Lynne receiving 12.5% royalties from Smith’s song. Personnel on the record were: Tom Petty (lead, backing vocals, acoustic guitar), Mike Campbell (slide guitar), George Harrison (acoustic guitar, backing vocals), Jeff Lynne (bass, backing vocals), Phil Jones (Linn LM-1, drums), and Ringo Starr (Linn LM-1, drums).
Full Moon Fever was recorded in 1987-88 at M.C. Studios, Rumbo Studios, Conway Studios, Devonshire Studios and Sound City in Los Angeles. Produced by Tom Petty, Jeff Lynne, and Mike Campbell, the album was released in April 1989. It went to #3 on the Billboard Top 200 Albums chart, and has been certified 5X Platinum by the Recording Industry Association of America. Five singles were released from the LP.
Tom Petty was an American singer, songwriter, musician, and record producer. He was the lead vocalist, main songwriter, rhythm guitarist, and band leader of Tom Petty and the Heartbreakers. He started his professional career as band leader, bassist, and lead vocalist of Mudcrutch. He was also a member of the supergroup the Traveling Wilburys, a group that also included Bob Dylan, George Harrison, Roy Orbison, and Jeff Lynne. Petty released three studio albums and 11 singles as a solo artist; he released 16 studio albums, 10 live albums, one soundtrack album, nine compilation albums, an EP, and 76 singles with the Heartbreakers. Petty also released two studio albums, one compilation box set, and nine singles with the Traveling Wilburys, and two studio albums, one live album, a live EP, and seven singles with Mudcrutch. Tom Petty and the Heartbreakers are members of the Rock and Roll Hall of Fame and have a star on the Hollywood Walk of Fame. Petty is the recipient of a Gershwin Award, a Billboard Century Award, and an ASCAP Golden Note Award. He died in Santa Monica, CA, in October 2017 at 66.
"About the Song" -- written by Mickey McMahan , RBN Director of Musicology
