Wednesday, May 27, 2015
Construction of a $500-million propane export terminal at the Port of Portland late last week appeared to have garnered tentative support for a second chance at City Hall. The project was assumed dead when Portland, Ore. Mayor Charlie Hales yanked his support. But City Commissioner Nick Fish nonetheless has asked the city attorney to determine if Pembina Pipeline Corp. has a legal right to a hearing on a zoning change it is seeking to move the project forward. However, Fish’s move may be just legal maneuvering to fend off possible legal action by Pembina after Hales, an early and staunch champion of the project, abruptly changed his mind and asked Pembina to pull the plug on the terminal.
Hales pulled consideration of the zoning change from the City Council’s June 10 agenda. The mayor has one of five votes on the council. That pleased environmental activists, who have vehemently opposed the terminal, but left Pembina, which has spent a reported $15 million on the project so far, hanging out to dry. Media reports note that Hales created problems when he decided the project he had once welcomed and bragged about as a high water mark in his administration’s efforts to recruit industrial jobs suddenly became inconvenient after environmentalists loudly voiced opposition.
The list of casualties includes the hundreds of union construction workers who would build the facility, the dozens who would secure full-time, well-paying work, and the city of Portland, which would derive millions a year in tax revenue. At the same time, environmentalists are happy and view killing the project as a victory for climate action and sustainability. Flush with success, Audubon’s conservation director is calling for adoption of a policy that says Portland will not build any fossil fuel export facilities in the city.
Meanwhile, Pembina isn’t throwing in the towel, and is seeking support for placing the zoning change it needs back on the City Council agenda. But surely the company’s officials in Calgary must be dumbfounded—certainly blindsided. As reported by the Oregonian newspaper, Mayor Hales, who is serving his first term, since last fall steadfastly defended the project, proclaiming it met the city’s high safety and environmental goals. He maintained his support as the company spent millions, then changed his mind even though Pembina had not changed its project. Hales faces reelection in 2016.
The ongoing propane industry woes in Portland were preceded in March when another West Coast export terminal proposal was rejected. Port of Longview, Wash. commissioners unanimously voted down a project by Sage Midstream (Houston) subsidiary Haven Energy. That $300-million initiative also faced fierce community and environmental group opposition, which prevailed over support from local building trades. As it stands now, it appears new outlets from the U.S. Pacific Coast for propane won’t be constructed, thereby providing a shortcut to burgeoning Asian markets offshore. The smart money bet on the Gulf Coast.
Hales pulled consideration of the zoning change from the City Council’s June 10 agenda. The mayor has one of five votes on the council. That pleased environmental activists, who have vehemently opposed the terminal, but left Pembina, which has spent a reported $15 million on the project so far, hanging out to dry. Media reports note that Hales created problems when he decided the project he had once welcomed and bragged about as a high water mark in his administration’s efforts to recruit industrial jobs suddenly became inconvenient after environmentalists loudly voiced opposition.
The list of casualties includes the hundreds of union construction workers who would build the facility, the dozens who would secure full-time, well-paying work, and the city of Portland, which would derive millions a year in tax revenue. At the same time, environmentalists are happy and view killing the project as a victory for climate action and sustainability. Flush with success, Audubon’s conservation director is calling for adoption of a policy that says Portland will not build any fossil fuel export facilities in the city.
Meanwhile, Pembina isn’t throwing in the towel, and is seeking support for placing the zoning change it needs back on the City Council agenda. But surely the company’s officials in Calgary must be dumbfounded—certainly blindsided. As reported by the Oregonian newspaper, Mayor Hales, who is serving his first term, since last fall steadfastly defended the project, proclaiming it met the city’s high safety and environmental goals. He maintained his support as the company spent millions, then changed his mind even though Pembina had not changed its project. Hales faces reelection in 2016.
The ongoing propane industry woes in Portland were preceded in March when another West Coast export terminal proposal was rejected. Port of Longview, Wash. commissioners unanimously voted down a project by Sage Midstream (Houston) subsidiary Haven Energy. That $300-million initiative also faced fierce community and environmental group opposition, which prevailed over support from local building trades. As it stands now, it appears new outlets from the U.S. Pacific Coast for propane won’t be constructed, thereby providing a shortcut to burgeoning Asian markets offshore. The smart money bet on the Gulf Coast.
