Print

Mail

wiki links

Arnie terminates plan to construct LNG terminal

California Governor Arnold Schwarzenegger rejected an application by an Australian energy company to build an US$800 million floating liquefied natural gas (LNG) terminal off the southern California coast.

BHP Billiton's proposal previously was rejected by the State Lands Commission and the California Coastal Commission. The company needed permission from both bodies and the governor to build the terminal.

Schwarzenegger said he was open to the idea of building a terminal off the coast as a means of diversifying the state's fuel supply. But he said the current proposal did not pass muster.

"Liquefied natural gas can and must be an important addition to California's energy portfolio," the governor said in a statement.

"However, any LNG import facility must meet the strict environmental standards California demands to continue to improve our air quality, protect our coast and preserve our marine environment. The Cabrillo Port LNG project, as designed, fails to meet that test," he said.

The terminal was to be built about 23km off Malibu and 32km off Oxnard. Residents, including a number of celebrities, said it would be an eyesore and pollute the air.

The plan involved bringing chilled gas overseas to be heated and then piped ashore. From there, Southern California Gas Co would deliver it to consumers.

BHP spokesman Patrick Cassidy said the company was disappointed with Schwarzenegger's decision.

"For now, we're considering the comments made about Cabrillo Port to determine what our next steps will be," he said.

Conservationists, meanwhile, agreed with the decision.

"For the many communities facing these types of projects being foisted onto them, it's a very, very tough battle," said Susan Jordan, who heads the California Coastal Protection Network, a nonprofit that led the opposition.

Jordan and Linda Krop, chief counsel for the Environmental Defense Center, said they would not necessarily oppose all LNG projects.

"We would certainly look at it on its own merits," Krop said of future proposals.
This story has been viewed 1145 times.