Mitsubishi unit's Long Beach LNG terminal dealt legal blow

March 24, 2008
Mitsubishi Corp. subsidiary Sound Energy Solutions (SES) plans to consider its options for construction of an LNG regasification terminal at the Port of Long Beach following an apparent legal reversal.

Eric Watkins
Senior Correspondent

LOS ANGELES, Mar. 24 -- Mitsubishi Corp. subsidiary Sound Energy Solutions (SES) plans to consider its options for construction of an LNG regasification terminal at the Port of Long Beach following an apparent legal reversal.

A Mar. 17 ruling by Los Angeles Superior Court Judge James Chalfant upheld the Port of Long Beach's termination of the environmental review of the proposed SES LNG terminal at the port. The judge's ruling will be formally entered Apr 9, giving SES 60 days to appeal.

SES will decide in April whether to appeal the court ruling, said Tom Giles, SES executive vice-president, who expressed disappointment over the decision.

Chalfant ruled against an earlier SES court filing, upholding the Long Beach port's discretion in its January 2007 decision to stop work on a final environmental impact report.

SES had sought a 25-year site lease with the port to build an $800 million, 1 bcfd facility that would regasify most of its shipments, but distribute some LNG locally for use in transportation and in running port equipment in the harbor.