Japanese interests, including giant Mitsubishi Corp., are pursuing a possible liquefied natural gas (LNG) receiving terminal in Los Angeles Harbor, which combined with neighboring Long Beach is the busiest port in the United States and the third busiest in the world. Rather than suffer through the pitfalls of their predecessors by overlooking local concerns, the Japanese are making a grass roots effort to get this project off the ground.

The San Pedro area of Los Angeles that surrounds the port beat back an LNG proposal a quarter century ago, and some of the community groups and environmental activists have long memories. Industry sources, however, say the Japanese are very serious about the project and have taken the advice of the head of the Los Angeles Harbor Commission, who strongly suggested the LNG terminal backers initially round up local support from businesses and residents. At the same time, Mitsubishi has had preliminary discussions with the City of Los Angeles Department of Water and Power (LADWP) and Southern California Gas Co.

One knowledgeable energy observer at the state level noted that the project proponents are suggesting replacing diesel-power harbor equipment with LNG-fueled equipment that will provide major air quality offsets similar to some clean-fuel transportation offsets used in San Diego County to obtain the final approvals for the Otay Mesa natural gas-fired power plant.

Local news reports May 19 cited a LA city councilperson and the LADWP as backing the development of an LNG terminal as a means of cleaning up the vehicles and equipment operating in LA Harbor. A public relations representative for Mitsubishi touted the LNG terminal as a way to improve the air quality in the increasingly busy port.

An LADWP source said the utility has not made any commitments to Mitsubishi or other LNG proponents, such as affiliates of El Paso Natural Gas, with whom they have also talked. The city utility has a power plant in the Long Beach area that would be close enough for a direct pipeline from the proposed LNG facilities, or through SoCalGas’ existing pipelines.

A port community advisory committee was briefed on Mitsubishi’s plans last Thursday, with a strong emphasis on the environmental and economic advantages of the project. The proposal now goes to a port master plan subcommittee for study.

Safety has always been a concern related to the unloading, storage and re-gasification of LNG, but since last year’s 9/11 terrorist attacks, major ports also have been the focus of increased security concerns. In that context, LA’s Mayor James Hahn on Friday called for a through review of the proposal. The mayor’s sister, Janice Hahn, is the council members for a district that covers San Pedro, and both Hahns are long-time residents of the area.

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