LNG developer NorthernStar bankrupt

LNG developer NorthernStar has filed for bankruptcy, after suspending a proposed terminal near Astoria.

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NorthernStar, the liquefied natural gas developer that recently halted development of a LNG import terminal near Astoria, has filed for bankruptcy.

The development of the terminal at Bradwood Landing was halted yesterday, with NorthernStar President Paul Soanes blaming the state for permit delays.

Gov. Ted Kulongoski’s staff was told Tuesday the company’s financial backer, a private equity fund that has put $100 million into the company’s LNG proposals in Oregon and California, had pulled the plug.

When NorthernStar began developing Bradwood nearly six years ago, gas prices were high and importing the commodity to the United States from abroad seemed like a lucrative opportunity. But since then, increasing gas supplies — in tandem with the economic recession — has put domestic gas prices into a free fall, undermining LNG terminals that recently opened on the Gulf of Mexico and in Baja, Mexico, and casting doubts on efforts to build new ones.

Read the whole story at OregonLive.com.

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