Regional LNG: Australian PM says Schwarzenegger response 'positive' on LNG plan
Thursday, June 3 2004 - 01:37 AM WIB
With California's unquestioned energy needs, "The governor himself expressed a keen desire to see that our negotiations were brought to a successful conclusion - a very keen desire," Howard told reporters after their closed-door, 30-minute meeting.
Local governments have raised fears about possible environmental damage and an increased risk of terrorism, but Schwarzenegger "said very positive things" about the multibillion-dollar plan by mining and natural resources giant BHP Billiton, Howard said.
"He didn't just show a provisional interest," Howard added. "There is clearly a desire to establish a linkage with an Australian supplier."
The governor did not appear with Howard after the meeting, during which the prime minister gave Schwarzenegger a pair of Australian boots.
A spokesman, Vince Sollitto, said Schwarzenegger "expressed a great deal of interest in the proposed natural gas facility and asked a number of questions about the timetable, the company's safety history and its environmental record."
"He also expressed interest in the fact that the terminal would be the state's first dedicated liquefied natural gas facility," serving only California, Sollitto said.
The proposed terminal would be anchored to the ocean floor off Ventura County in 2,900 feet of water. Tankers from Australia would ferry liquefied natural gas to the offshore plant, where it would be converted to vapor and sent by pipeline for distribution to power plants and homes.
Howard, who predicted the project could meet 15 percent of the state's natural gas needs, acknowledged various regulatory hurdles would have to be cleared. He said he didn't expect a decision before late this year, at the earliest.
"We have huge supplies ... and we have a proven track record of safely carrying it long distances to other countries," he said. "We offer to California long-term, secure, price-competitive supplies" of liquefied natural gas.
Howard said he was confident the company could address environmental concerns. As for the possible threat of terrorism, Howard said an attack was no more a risk offshore than on land. "Terrorists are more likely, in theory, to attack something when there is a large population," he said.
Although Schwarzenegger stopped short of a commitment, administration officials will meet with Howard's staff next week and will visit Australia gas fields in July, Howard said.
Residents in Oxnard and Malibu have complained that the environmental, health and terrorism risks posed by the terminal would far outweigh any economic benefits. Malibu's City Council has passed a resolution opposing two liquefied natural gas projects in the Santa Barbara Channel, although it has no jurisdiction to stop them.
"If Sacramento wants it, then put it in Sacramento," said Malibu council member Pamela Conley Ulich. (*)