Natural Gas

Houston-based NorthernStar Natural Gas has been given the go-head by the Federal Energy Regulatory Commission for its proposed LNG receiving terminal on the Columbia River near Astoria, Oregon.

NorthernStar must still get state approval for its proposed $650 million Bradwood Landing. In giving its approval,  FERC gave the company more than 100 conditions it must meet over safety and environmental issues. The company has said it will working with federal and state officials to meet those conditions.

The Bradwood project has become the first LNG terminal on the West Coast to get FERC approval. The commission gave its approval with a 4-1 vote. The commission chairman says the LNG that would come into the terminal is needed for the West Coast.

And as is the case with any LNG terminal, this isn’t the end.

Oregon Gov. Ted Kulongoski says his state will request federal officials conduct a new hearing on the project to ensure that state and local communities’ concerns are addressed.

“Today’s decision by the federal government lacks accountability to the environment and the people of Oregon,” Kulongoski said in a statement on his web site. “The commission has decided to ignore the law and instead approve a project with incomplete mitigation plans and without regard to Oregon’s important concerns.”

Columbia Riverkeeper executive director Brent Foster says, “We expected FERC to rubber stamp the LNG project from day one. At this point Oregon needs to use all the authority it has to stop this project.” Columbia Riverkeeper is an environmental group opposed to any LNG terminals along the West Coast.

NorthernStar must now get permission from the State Lands Board and that may seal the fate of this project. Oregon Treasurer Randall Edwards and Secretary of State Bill Bradbury, two of the three members on the board, have already publicly announced they oppose LNG projects in Oregon.

Stay tuned. More to come. Expect a firestorm anytime you mention LNG terminal along the West Coast. Seems like NorthernStar may have a huge obstacle to overcome with the State Lands Board. That should be a very interesting hearing when it is scheduled.

–John A. Sullivan, News Editor, Oil and Gas Investor, www.OilandGasInvestor.com, jsullivan@hartenergy.com

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