Pembina Abandons Effort to Develop Propane Terminal

News
Pembina Pipeline Corp. (Calgary) has officially abandoned plans to develop a $500-million American West Coast propane export terminal at the Port of Portland, Ore. The news came in the company’s annual report, which stated it was dropping the project. A Pembina spokesman said the decision came because of “a lack of support by the mayor and city council.” After initially supporting the export terminal, Portland Mayor Charlie Hales blocked Pembina’s bid last year, refusing to let the project come up for a vote before the city council and asserting that the terminal did not meet Portland’s environmental standards. Pembina officials as recently as November said that the initiative was still in play and that it looked forward to an opportunity to present the project to the Portland City Council at a future date.

Hales blocked the project after the Portland Planning and Sustainability Commission recommended the city council approve an amendment that would have allowed it to proceed, but only after levying a $6.2-million, first-ever climate charge. While the council passed a resolution banning fossil fuel infrastructure projects in Portland last November, a subsequent final vote on the Pembina export terminal never took place.

Port officials announced their agreement with Pembina in September 2014, saying the project would produce 800 temporary construction jobs and up to 40 permanent positions, while generating nearly $9 million in taxes a year split between the city, Multnomah County, and Portland Public Schools. Hales lauded the deal, saying it met the city’s goals of growing the economy and “holding industry to very high environmental and public safety standards.” But the following May he reversed course, saying a review led him to the conclusion that Pembina had not made a strong enough case relating to environmental standards.

His flip-flop drew the ire of business groups. Port of Portland executive director Bill Wyatt charged that Hales’ decision was prompted over concerns of his reelection prospects and opposition by environmental and community groups. Hales subsequently dropped his bid for reelection, and told local media that Pembina’s decision to abandon the port project closes a chapter on the city’s debate over fossil fuel development.

Sandra McDonough, president and CEO of the Portland Business Alliance, terms the city’s handling of the Pembina proposal “a lost opportunity” for Portland to positively impact greenhouse gas emissions globally because Pembina would have provided cleaner-burning propane to markets in China, which now uses much dirtier fuels. “Pembina made a legitimate application to the city of Portland to site a propane facility on Port of Portland property, and they invested a considerable amount of money as they worked their way through the complex process. The question Portland now faces is what happens next time a company wants to invest in our community? Can they expect that siting rules will be applied consistently and fairly, or will they be subject to the same inconsistencies experienced by Pembina.”

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