LNG project on hold

NorthernStar Natural Gas, Inc. is suspending its LNG terminal near Astoria.

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NorthernStar Natural Gas announced yesterday that it is suspending plans to build a LNG terminal at river mile 38 of the Columbia River.

The plan was opposed by property owners and environmentalists, and had already spent $100 million of investors’ capital.

Mike Carrier, natural resources policy director for Gov. Ted Kulongoski, said the company told him Tuesday that another developer could conceivably resurrect the project. But Carrier said the company told him its financial backer, a private equity fund that has put $100 million into the company’s LNG proposals in Oregon and California, was pulling the plug.

NorthernStar began development work nearly six years ago at an abandoned mill site on the lower Columbia River. At the time, gas prices were high and importing the commodity to the United States from abroad seemed like a lucrative opportunity.

Read the full story at OregonLive.com.

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