Oregon Gov. Ted Kulongoski held a one-day Energy Summit last Wednesday and broadened his outlook to be all-inclusive of various traditional and alternative energy options, including the import of liquefied natural gas (LNG). Kulongoski would not rule out any options and said he will soon create a state unit to ferret them out.

A leading proponent of an Oregon LNG receipt facility, NorthernStar Natural Gas touted Kulongoski’s remarks as a sign that he has not closed the door on LNG. The backer of the Bradwood Landing site on the Oregon side of the Columbia River just east of where it meets the Pacific Ocean said the governor called for keeping LNG as an option.

At the summit Kulongoski said Oregon citizens need the “cold facts” — namely what all the options are, and that the governor’s “bottom line for energy is, Oregon families and businesses must always have supply certainty and price stability.”

NorthernStar CEO William Garrett said the governor pointed out that Oregon will add 1 million people by 2030, and while renewables will make up 25% of the electric generation portfolio by 2025, “the state will still have a long-term need for traditional fuels for many years to provide the other 75% of Oregon’s energy.”

“Demand for energy will go up as more people and businesses tap into the electrical grid,” Kulongoski said. “So in order to maintain certainty and price stability — supply will have to go up, too. Much as we might wish otherwise — for at least the next decade — renewable energy will not, by itself, be able to satisfy Oregon’s demand for energy.”

Similar to the Oregon governor’s economic council of advisers, Kulongoski said he will soon create by executive order the Oregon Planning and Energy Council, or OPEC, with an emphasis on reducing foreign oil dependence. The council report to both the governor and state legislature.

Kulongoski said he expects the council to forecast needs for energy transmission, price stability, renewable energy, alternative energy sources and energy efficiency; develop short- , mid- and long-term energy plans; monitor potential gaps between demand and supply; identify immediate challenges to meeting price stability and energy supply certainty; and advise the governor and state lawmakers on emissions and environmental impacts from the state’s energy strategy.

Garrett reiterated the theme that prices are going up and supplies of natural gas are tightening for the Pacific Northwest region, citing the recent example of Northwest Natural Gas filing with state regulators to recover a 25% increase this fall in its wholesale gas costs.

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