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Providing coverage of Alaska and northern Canada's oil and gas industry
June 2005

Vol. 10, No. 24 Week of June 12, 2005

Long Beach votes to continue LNG talks

The Long Beach City Council has voted to continue talks on a proposed LNG terminal at its port, the Los Angeles Times reported. The 5-4 vote early June 8 was a defeat for residents who wanted to stop the facility planned by a joint venture of Mitsubishi Corp. and ConocoPhillips.

About 400 people came to hear the debate over the proposed terminal, which could handle 5 million tons of liquefied natural gas annually, turning it into 700 million cubic feet of gas each day.

Some council members said they had concerns about the project, but the council decided to go ahead with an environmental impact report and consider the matter again once that is completed next spring. Council members opposing the project cited concerns about terrorist attacks at the site, about two miles from downtown Long Beach.

The $450 million terminal had supporters as well as opponents at the packed hearing, with some union leaders saying the use of LNG for terminal vehicles would clean the air, and the project would provide jobs.

Three other terminals are proposed in California, two to be sited far offshore. One terminal just across the border in Ensenada, Mexico, is already under construction and another in Baja California is planned. California’s current natural gas consumption is about 6.5 billion cubic feet daily, and even the relatively small Long Beach terminal could supply more than 10 percent of that. So it’s unlikely that all of the terminals will go forward.

—Allen Baker






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