Southern California -- this just in

« Previous Post | L.A. NOW Home | Next Post »

LNG facility off L.A. coast is scrapped

January 15, 2009 |  3:14 pm

BhpAn Australian company has dropped plans to build a controversial liquefied natural gas facility in Santa Monica Bay.

Woodside Petroleum Ltd., Australia’s second-largest oil and gas producer, cited changing market conditions in scrapping the project, according to Bloomberg News. It marks the second LNG project off the Los Angeles coast to be killed. In 2007, another project died because of opposition from residents.

Rep. Jane Harman (D-Venice), who represents part of the coast, expressed support for the move.

“I’ve long said the Woodside LNG project posed serious environmental problems and made LAX a bigger security risk," she said in a statement. "Perhaps there is a role for LNG as a transitional fuel, but our region already has access to adequate gas supplies to meet market demands. I'm glad that Woodside recognized the level of local concern over this project and am grateful to the elected officials and residents who made their opposition known.”

The facility would have been built 22 miles off the coast of Malibu, where residents strongly opposed the project.

-- Shelby Grad

Image: An LNG facility. Credit: BHP-Billiton-LNG