Oregon LNG

Oregon LNG is an energy company whose sole project is a proposal to build a liquefied natural gas (LNG) receiving hub and a natural gas pipeline in northwest Oregon.

Terminals

The site of the proposed Oregon LNG receiving facility is in Warrenton, Oregon, on the Columbia River. Warrenton is eight miles (13 km) west of Astoria, Oregon, and is less than 10 miles (16 km) from the point where the Columbia empties into the Pacific Ocean. The site is currently being leased by Oregon LNG and consists of 96 acres (39 ha) on the Skipanon Peninsula, a man-made peninsula that was created in the 1920s out of dredge spoils.^[1] The terminal would receive natural gas shipped from overseas. For transport, the gas is chilled to approximately negative 260 °F (127 °C). This condenses the gas into a liquid, making it much more compact and easy to ship. At its destination, the LNG is transferred from cargo ships to a receiving terminal, which then warms the LNG back to a gaseous state to be piped to customers. If built, the Oregon LNG project would include a marine receiving terminal, three full-containment 160,000-cubic-meter LNG storage tanks, and facilities for ship berthing and offloading. ^[2] The storage tanks would be 17 stories tall and would be visible from Astoria. A 2,100-foot (640 m) pier would jut into the river, where a basin would be dredged for LNG tankers to unload.^[3]

Oregon pipeline

Once cooled back into gas, the natural gas from the Oregon LNG terminal would be transported downstate through a new pipeline which is included in the plan. The Oregon Pipeline would be 120 miles (190 km) long^[4] connecting the terminal in Warrenton with the Molalla Gate Station, a hub on an existing natural gas pipeline. The pipeline would run southeast from Warrenton through Clatsop, Tillamook and Washington counties. Near the town of Gaston, Oregon, it would head more directly south through Yamhill county, turning east near McMinnville, Oregon, and passing through Marion County to connect with existing pipeline near Molalla, in Clackamas County.^[5] The 36-inch-diameter (910 mm) pipe would be buried three to five feet underground and would be constructed of plastic-coated steel.^[6] The pipeline and the Oregon LNG terminal combined would effect an identified 239 landowners. The land includes family farms, nurseries and tree farms.^[7] The pipeline passes through the upper part of the Willamette Valley, a region known for its wineries.^[8] The route is similar to that of another proposed natural gas pipeline, the Palomar Pipeline, which is affiliated with a competing proposal for an LNG terminal at Bradwood Landing, also on the Columbia River.

History

The project currently known as Oregon LNG began as the Skipanon Natural Gas Facility, with initial talks in 2004.^[9] Calpine Energy initiated the project, signing a lease for the 94-acre (380,000 m²) site with the Port of Astoria. In 2005, Calpine went into bankruptcy.^[10] The project was acquired from Calpine in January, 2007^[11] by a partnership between original managers of the project and Leucadia National Corp.^[12] Leucadia holds a majority share of Oregon LNG. ^[13] Oregon LNG filed a formal application with the Federal Energy Regulatory Commission (FERC) in October 2008. ^[14] Of the three LNG projects being proposed in Oregon — Oregon LNG, Bradwood Landing, and Jordan Cove — Oregon LNG is the only one who has not already received approval from FERC.

Controversy

A number of interrelated controversies have surrounded Oregon LNG’s lease of the Skipanon Peninsula land. The land is leased by the Port of Astoria from the state of Oregon. The lease negotiated in 2004 by the Port of Astoria’s director at the time, Peter Gearin, was for the same amount that the port paid to the state, a low rate of $41 an acre, raising objections that the port is not making the return it should on the deal.^[15]

In October 2009, Gearin’s lease deal came under additional scrutiny when the Oregon Attorney General’s office released a statement describing evidence that Gearin was guilty of official misconduct during the negotiations in 2004. Gearin’s girlfriend, who worked for the port, was hired to do public relations work for Calpine just weeks before Gearin advocated approval of the lease, during a special meeting of port commissioners. Gearin did not disclose the connection with his then-girlfriend, now wife, at that time. The attorney general’s office never attempted to prosecute the case, as the statute of limitations had run out before the investigation was complete.^[16]

In an unrelated scandal, Gearin was fired in 2007 for improperly releasing waste water and dredgings into the Columbia River. He later pled guilty to a violation of the Clean Water Act.^[17]

Opposition

Oregon LNG is opposed by environmental groups including Columbia Riverkeeper^[18] and the Sierra Club.^[19] The pipeline is also opposed by property rights advocates and landowners who may be subject to eminent domain laws that would force them to allow pipeline to be buried on their properties. They are represented in part by the Northwest Property Rights Coalition.^[20]

References

1. ^ Columbia Riverkeeper website
2. ^ Oregon LNG website
3. ^ The Oregonian, Oct. 14, 2008, Ted Sickinger, “Another player enters LNG fray,” Portland, Oregon
4. ^ Oregon Pipeline website
5. ^ Oregon Pipeline website
6. ^ Oregon Pipeline website
7. ^ Oregon LNG list of landowners
8. ^ Willamette Valley Wineries Association
9. ^ Oregon LNG website
10. ^ The Oregonian, Oct. 14, 2008, Ted Sickinger, “Another player enters LNG fray,” Portland, Ore.
11. ^ Oregon LNG website
12. ^ The Oregonian, Nov. 8, 2009, Scott Learn, “Lease for golf is latest wrinkle in LNG deal,” Portland, Ore.
13. ^ Downstream Today
14. ^ Oregon Pipeline website
15. ^ Columbia Riverkeeper website
16. ^ The Oregonian, Oct. 21, 2009, Scott Learn, “AG finds misconduct by ex-Port director,” Portland, Ore.
17. ^ The Bend Bulletin, Feb. 20, 2009, “Former Astoria port director pleads guilty”
18. ^ Columbia Riverkeeper website
19. ^ Sierra Club website
20. ^ Northwest Property Right Coalition website

External links

• Oregon LNG
• Oregon Pipeline
• Background on LNG development on the Columbia River