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SCDC study says LNG good for area
By Kathy Erickson and Carl Mickelson
Friday, October 20, 2006 | No comments posted.
Siting a liquefied natural gas facility on the North Spit will have a positive local economic impact - and the ripple effect will be felt regionally and even statewide.
That's the conclusion of an independent study commissioned by the South Coast Development Council.
The SCDC hired ECONorthwest to do the economic impact analysis. According to SCDC Executive Director Ron Opitz, the cost of the study was $25,000. The Portland firm also produced the SCDC's white paper on transportation on the the South Coast economy in 2005.
The firm was challenged to measure the economic impact extending a decade that would arise from the delivery, storage and regasification of LNG into natural gas at Coos Bay; the shipping of natural gas through a connector pipeline; and the savings to Oregonians from having the LNG terminal in Coos County instead of Northern California.
Among the major findings of the report:
- There is no evidence that LNG facilities hurt nearby property values.
- Overall, Oregonians would save $17 million in 2016 on their energy bills if the terminal were built in Coos County. Local businesses in the state would save $31.5 million. And, according to the study, savings of that magnitude would occur each year the terminal operates.
- Placing the LNG terminal would result in 400 additional jobs with above-average wages.
- Statewide, the terminal would raise annual employment by 1,173 and in the year 2016, the total economic impact would be an additional $488 million.
The conclusions were met with cautious optimism by the SCDC board chairman.
“Our economic future depends on the recruitment and support of business such as the Jordan Cove LNG project, provided that the project has a positive economic effect on our economy,” said Greg Aldridge.
Opitz, who stressed the report was produced independently and that Jordan Cove didn't direct it, commission it or participate in it, said he was pleased but not surprised at its conclusions.
“I see it as positive - very positive,” Opitz said. “I wasn't surprised but I guess I didn't appreciate the total economic impact over the long haul.”
“The economic opportunity presented to Coos Bay and the South Coast as an LNG host site is substantial,” according to the study. “The availability of a secure and stable natural gas supply with pricing advantages would act as a catalyst for attracting downstream development and stimulating economic growth. The significance of such a response is not to be underestimated.”
What's more, the impact wouldn't take long to be felt.
“It is conceivable that the response would be immediate with companies locating near the LNG terminal,” the study concluded. “In addition to the gas resource, these players would be seeking to take advantage of the industrial land available on the North Spit and the other assets available including the deepwater port ... .”
Opitz said that, along with being informative, the report is very readable.
“We asked them to research the issue to the best of their technical ability,” Opitz said, “and then to present it in a form a family here could pick up and read.”
He added he thinks the white paper will be of great interest to South Coast residents.
“It's very obvious people here want to know what's going on with LNG,” Opitz said.
More information about the ECONorthwest “Forecast of the Net Economic Benefits of a Proposed LNG Terminal in Coos County, Oregon,” those interested can call the SCDC at 266-9753. A link to the study is available at the SCDC's Web site at www.scdcinc.org.
That's the conclusion of an independent study commissioned by the South Coast Development Council.
The SCDC hired ECONorthwest to do the economic impact analysis. According to SCDC Executive Director Ron Opitz, the cost of the study was $25,000. The Portland firm also produced the SCDC's white paper on transportation on the the South Coast economy in 2005.
The firm was challenged to measure the economic impact extending a decade that would arise from the delivery, storage and regasification of LNG into natural gas at Coos Bay; the shipping of natural gas through a connector pipeline; and the savings to Oregonians from having the LNG terminal in Coos County instead of Northern California.
Among the major findings of the report:
- There is no evidence that LNG facilities hurt nearby property values.
- Overall, Oregonians would save $17 million in 2016 on their energy bills if the terminal were built in Coos County. Local businesses in the state would save $31.5 million. And, according to the study, savings of that magnitude would occur each year the terminal operates.
- Placing the LNG terminal would result in 400 additional jobs with above-average wages.
- Statewide, the terminal would raise annual employment by 1,173 and in the year 2016, the total economic impact would be an additional $488 million.
The conclusions were met with cautious optimism by the SCDC board chairman.
“Our economic future depends on the recruitment and support of business such as the Jordan Cove LNG project, provided that the project has a positive economic effect on our economy,” said Greg Aldridge.
Opitz, who stressed the report was produced independently and that Jordan Cove didn't direct it, commission it or participate in it, said he was pleased but not surprised at its conclusions.
“I see it as positive - very positive,” Opitz said. “I wasn't surprised but I guess I didn't appreciate the total economic impact over the long haul.”
“The economic opportunity presented to Coos Bay and the South Coast as an LNG host site is substantial,” according to the study. “The availability of a secure and stable natural gas supply with pricing advantages would act as a catalyst for attracting downstream development and stimulating economic growth. The significance of such a response is not to be underestimated.”
What's more, the impact wouldn't take long to be felt.
“It is conceivable that the response would be immediate with companies locating near the LNG terminal,” the study concluded. “In addition to the gas resource, these players would be seeking to take advantage of the industrial land available on the North Spit and the other assets available including the deepwater port ... .”
Opitz said that, along with being informative, the report is very readable.
“We asked them to research the issue to the best of their technical ability,” Opitz said, “and then to present it in a form a family here could pick up and read.”
He added he thinks the white paper will be of great interest to South Coast residents.
“It's very obvious people here want to know what's going on with LNG,” Opitz said.
More information about the ECONorthwest “Forecast of the Net Economic Benefits of a Proposed LNG Terminal in Coos County, Oregon,” those interested can call the SCDC at 266-9753. A link to the study is available at the SCDC's Web site at www.scdcinc.org.
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