A Palomar Gas pipeline will not be built through Clatsop County at this time.
The bankruptcy of the Bradwood liquefied natural gas terminal near Astoria and low demand for the gas are the main reasons cited in the companys notice of withdrawal statement submitted to the Federal Energy Regulatory Commission Wednesday.
The Palomar pipeline is not connected with the proposed Oregon LNG pipeline, which is based around a receiving terminal that Oregon LNG wants to build at the Skipanon Peninsula in Warrenton.
However, David Dodson, spokesman for Palomar Gas Transmission LLC, said the eastern portion of the project isnt dead yet.
Palomars 220-mile $750 million project was a joint venture of NW Natural and TransCanada U.S. Pipelines.
Bradwood was the only customer on the western leg, Dodson said. NorthernStar, the company at the head of that project, filed for bankruptcy last year.
Though the western end cant move forward without the Bradwood facility, Palomar still hopes to develop the eastern end of its proposed pipeline which would connect to a hub near Molalla, Dodson said.
The company has been working with the Confederated tribes of the Warm Springs Reservation and has come up with a route that is shorter than the one originally proposed: 100 miles long instead of 220 miles. Unlike their first proposed pipeline, this eastern-focused pipeline would not cross the Deschutes River, Dodson said.
The company doesnt have any easements yet and planning is still at the beginning stages, Dodson said.
The company has asked FERC to preserve the existing record Palomar developed when it still thought the Bradwood facility would be built. This application included material relating to both the eastern and western portions of the proposed pipeline.
Dodson estimated that the company paid upwards of $30 million in development costs on the pipeline.
Were hoping that $30 million is an investment, he said. By preserving some of the original record, they could also preserve some of the value of that investment as they move forward with future projects, he said.
The Associated Press contributed to this story