Schwarzenegger Rejects BHP Billiton’s LNG Proposal

(Bloomberg) — California Governor Arnold Schwarzenegger rejected BHP Billiton Ltd.’s proposed $800 million natural gas-import facility because it would harm the environment.

He echoed comments by the California Coastal Commission and State Lands Commission, which both turned down the proposal for off the coast of Southern California last month. Schwarzenegger, a Republican, said the state does need additional gas supplies.


The governor’s decision, announced today in an e-mailed statement, may terminate Melbourne-based BHP’s more than three- year pursuit for approval of the project. The facility would process liquefied natural gas, or LNG.

“Liquefied natural gas can and must be an important addition to California’s energy portfolio,” Schwarzenegger said. “However, any LNG import facility must meet the strict environmental standards California demands.”

Bloomberg