Tuesday, March 29, 2011

Palomar Gas Transmissions LLC pulls FERC application, cites low demand

GRANTS PASS, Ore. - Developers of a natural gas pipeline intended to bring new supplies to the Portland metro area have pulled their application from federal regulators, citing the bankruptcy of a terminal on the Columbia River, low demand for gas, and development of a new route across the Cascade Range.

Palomar Gas Transmissions LLC notified the Federal Energy Regulatory Commission on March 23 that it was withdrawing its Palomar Pipeline project.

The 220-mile, $750 million project was a joint venture of NW Natural and TransCanada U.S. Pipelines.

It was originally planned to carry gas from the now-defunct Bradwood Landing liquid natural gas terminal in Clatsop County and the Northwest Pipeline on the east side of the Cascades to the Portland area.

TransCanada spokesman David Dodson said from Houston that the eastern half of the project would be revived when market conditions improved. It could take a new route through the Confederated Tribes of the Warm Springs Reservation, reducing the mileage across Mount Hood National Forest and crossings of federally protected rivers.

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