Calpine pulls plug on proposed LNG project

San Jose-based Calpine Corp. said March 17 it has withdrawn its plans to build a liquefied natural gas terminal at Samoa Point, in Eureka, Calif., and is “ceasing development activities.”

The announcement came the evening before a public hearing that the city council had continued from March 16 in order to give everyone who wanted to testify about the proposed LNG terminal a chance to do so. (See related story on page A16 of this issue.)

Calpine had wanted to build an LNG terminal that would handle up to 1 billion cubic feet per day and was looking at a site near the municipal airport, at Humboldt Bay. The city was considering an exclusive agreement with Calpine for the property.

“Based on feedback from the local community and public officials, we believe this decision is best for all parties,” Calpine Vice President Ken Koye said in a written statement released around 7:40 p.m. on March 17.

The company said it looks for a “clear majority” of local community support for its proposed projects, which it obviously thought it did not have from the northern California community.

Founded in 1984, Calpine is a North American power company that provides electric power to wholesale and industrial customers from natural gas-fired and geothermal power facilities. The company is listed on the S&P 500 and was named Fortune’s America’s most admired energy company in 2004.