A BHP Billiton plan to build a natural gas terminal off the Californian coast has been vetoed by Governor Arnold Schwarzenegger. (File photo) (Reuters)

Schwarzenegger terminates ( ha ha ) BHP gas plan

California Governor Arnold Schwarzenegger has vetoed a bid by Australian mining giant BHP Billiton to build a permanent natural gas terminal off the state's coastline.

In a letter to the US Maritime Administration, Mr Schwarzenegger agreed with earlier rejections of the proposal by the state Lands Commission and the California Coastal Commission.

Under the proposal, BHP would have moored a massive floating terminal 22 kilometres off the coast of Malibu, west of Los Angeles, in order to unload liquefied natural gas and process it before pumping it ashore.

But the plan met with furious opposition from environmentalists, as well as celebrity Malibu residents, including actors Tom Hanks and Pierce Brosnan.

"California needs to diversify fuel sources for California consumers with cleaner alternatives such as LNG," Mr Schwarzenegger wrote in his letter.

"However, any LNG import facility must meet the strict environmental standards California demands to continue to improve our air quality, protect our coast and preserve our marine environment."

Mr Schwarzenegger has vowed to make the environment one of his priorities in his final four years in charge of the most populous US state.

The California Coastal Commission ruled last month BHP's proposed technology would deposit hundreds of tons of soot and smog annually near the Los Angeles basin, in violation of local regulations.

The proposed terminal and its fleet of carriers would have been visible from the coastline on clear days, according to environmental studies.

Supporters of the terminal said it would help to provide California with clean-burning natural gas and said it would meet all local and federal environmental laws.

But environmental groups and Malibu-based celebrities voiced opposition to the plan, questioning the impact of the terminal on the coastline.

Malibu's city council and almost every elected official representing the area also expressed opposition to the project on environmental and energy-policy grounds.

- AFP

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