Palomar Gas Pipeline Is Dead. So What’s Next?

March 23, 2011
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The hotly contested Palomar Natural Gas Pipeline is dead.

Today, the Palomar Gas Transmission company filed papers with the Federal Energy Regulatory Commission to withdraw the project. But at the same time, Palomar says it’s exploring options for a new pipeline in the future.

How serious are they about developing a new pipeline? How long will it take? Big questions with no easy answers. At least not today.

Palomar spokesman David Dodson says he won’t speculate on time frame for developing a new project. But he says the company remains convinced that the demand for natural gas in the Portland metro area will continue to grow and the one current pipeline isn’t enough.”The need is there,” said Dodson, “but when is the tough question.”

For the record, Dodson disagrees with my use of the word “dead” to describe the status of the pipeline.

Environmental groups have fought Palomar on two fronts.

A western segment was designed to bring natural gas from the proposed Bradwood Landing LNG terminal on the Columbia River. But when Bradwood went bankrupt that pretty much ended those plans. Dodson says today’s filing is the kiss of death for a western segment. But those are my words, not his.

The other half of the project called for building a pipeline from Eastern Oregon, over the Cascades, and into the metro area. Instead of imported LNG, this one would have brought in domestic natural gas from the Rocky Mountain region. Environmentalists were opposed to this plan too, partially because the route went through the Mt. Hood National Forest.

Today’s filing hints at what the company’s next move might be. It says they struck a deal with the Confederate Tribes of Warm Springs for a shorter route – which means a smaller footprint in the Mt. Hood National Forest and avoids an over the river crossing of the Deschutes.

Should they move forward on this new route, it’ll be interesting to see how environmentalists react. How soon might it happen? Dodson didn’t know, saying it would depend on market forces.

One final note. NW Natural is a major investor in Palomar. The company’s annual meetings in Portland have become the focus of huge rallies by Oregon’s environment movement. We’ve got video from last year’s rally.

I’ve also attached a copy of today’s filing.

Video: Highlights From Thursday’s LNG Protest In Portland

Palomar Pipeline Withdrawal

 

 

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One Response to Palomar Gas Pipeline Is Dead. So What’s Next?

  1. [...] is going back to the drawing board to come up with a better plan for the pipeline, Dodson said. He told Natural Oregon that the company still believes the Portland metro area will need more than the existing pipeline [...]

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