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ASTORIA, Ore. - In an independent report released today, University of Oregon professor and economist Dr. Phil Romero, said a liquefied natural gas terminal such as the proposed Bradwood Landing facility would be a huge economic boon for the Pacific Northwest.
"The benefits of a regional LNG terminal are clear from this analysis," said Dr. Romero. "Increased natural gas supply from LNG would help support increased regional employment of between 5,100 and 20,300 jobs and help increase household income from between $51 and $214 million."
Increasing the amount of natural gas delivered to the Northwest would prevent the regional economy from the effects of a lessening gas supply and it would stimulate the economy, particularly in several high value added exporting industries (such as heavy manufacturing) which typically pay wages well above the regional average.
"The most cost-effective way to increase
the region's gas supply is to create the necessary infrastructure to import
natural gas shipped by sea from foreign countries-where it exists in abundance," said
Dr. Romero in his report. "To maintain a stable supply of natural gas, the Northwest-and
the nation-needs one or more West Coast terminals to receive liquefied natural
gas (LNG)."
The analysis highlights a scenario in which a terminal's capacity is utilized at rates similar to today's industry norms. In that circumstance, regional gas supplies in 2012 (the year that the Bradwood Landing terminal is scheduled to be fully operational) would be increased by 20.6% allowing natural gas prices to fall by an estimated 13.1%.
With a stable supply of natural gas, Northwest industries that rely on it such as pulp and paper mills, food processors, aerospace firms and other manufactures would have a secure energy future enabling them to compete and grow. Likewise, Northwest households would have higher disposable income (which would create a positive ripple effect through the regional economy) because they would have to spend less of their incomes on energy.
"The Northwest needs LNG because of changes in the region's traditional supplies of natural gas and its increasing reliance on natural gas both as a residential and industrial heating source and as a fuel for electrical generation," said Dr. Romero.
The world has ample supplies of natural gas, which can be cost-effectively transported by sea as LNG. Once chilled to -260 degrees Fahrenheit, natural gas condenses to a liquid (note that this is achieved by temperature and not by pressurization) taking up 1/600th of its volume as a gas. Receiving terminals convert the LNG back into a gas, a process known as re-gasification. It is then transported through the natural gas pipeline system to industrial and residential consumers.
Northwest Industrial Gas Users (NWIGU) executive director Paula Pyron said that, "the study confirms that our economy and the environment would benefit from a liquid natural gas terminal in the region. The Pacific Northwest needs an increased supply of affordable, reliable natural gas. Without greater natural gas supplies, the tight gas supply and demand balance in today's markets will put increased upward pressure on natural gas prices to the detriment of all gas consumers."
NorthernStar Natural Gas, Inc., which is proposing the Bradwood Landing LNG terminal, funded Dr. Romero's independent report to demonstrate the project's economic value to the Pacific Northwest.
For a copy of Dr. Romero's report: Liquefied Natural Gas and the Pacific Northwest: Clean, affordable energy as the engine for economic growth - An economic impact analysis for the states of Oregon, Washington and Idaho please contact Bradwood Landing, LLC at 905 Commercial St., Astoria, Oregon 97103 - (503) 325-3335.
Dr. Philip J. Romero is a professor of Business Administration (economics and strategy) and dean emeritus at the University of Oregon business school. In the 1990s, and again in 2005, he served as chief economist to the governor of California. He also is a member of the Oregon Governor's Council of Economic Advisers. Through the Forward Observer policy consulting firm as well as in government, he has estimated the economic impact of a very wide range of public policy proposals, and designed regulatory apparatus for the health insurance, electric utility, and telecommunications industries.
About Bradwood Landing™ LLC
Bradwood Landing believes that natural gas continues to be the best energy source for the Pacific Northwest. The company will deliver new sources of natural gas to this region creating new jobs and millions of dollars in local investment in surrounding communities. When completed, Bradwood Landing will provide an estimated 65 jobs averaging $60,000 a year and spend more than $30 million annually throughout the region to operate and maintain the facility. The facility will also increase the local tax-base by more than $7 million annually, creating a valuable source of income for improvements in essential services and education throughout the region. Bradwood Landing's financial commitment includes unprecedented levels of investment in the local environment. Beyond our deep financial commitments, Bradwood Landing is driven by our promise to make life better wherever we live and work. We want more than a presence our communities; we want to create a positive and lasting legacy that generates community pride. For more information about Bradwood Landing LLC, please visit: www.bradwoodlanding.com
About NorthernStar Natural Gas Inc.
At NorthernStar Natural Gas, we create innovative solutions that bring clean, safe, affordable natural gas to meet America’s energy needs. Led by a dynamic executive team with deep industry experience, NorthernStar Natural Gas is a US owned and operated company that is currently developing liquefied natural gas terminals across the country. We combine our business aspirations with a bold commitment to improve the communities where we live and work by generating new jobs and economic opportunities, supporting better education for our children and leaving a lasting legacy of environmental excellence in all that we undertake. NorthernStar Natural Gas is the Nation’s Clean, Safe Energy Solution™. For more information about NorthernStar Natural Gas Inc., please visit: www.northernstar-ng.com
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