Schwarzenegger keen on gas deal: PM
By Michael Gordon
June 4, 2004After a "very positive" meeting of less than 30 minutes, the Australian Prime Minister reported yesterday that the Governor of California seemed keen to consummate a deal worth more than $US4 billion ($A5.75 billion) to supply energy-poor California with liquefied natural gas.
"The Governor himself expressed a keen desire to see that our negotiations were brought to a successful conclusion," Mr Howard said. "He expressed great interest in a partnership between Australia and California."
Yes, there were hurdles, especially concerning the environment, the unfamiliarity of the Californian market with LNG and a push for Mexico to supply California's energy needs. But the response of Mr Schwarzenegger was encouraging.
The natural gas line over the Peruvian Andes has just recently been finished, and there is a big push on now to get the LNG plant built on the coast near Lima.
The gas from that plant will feed Sempra's plant in Baja.
The Bolivians were hoping to cash in similarly, building their own natural gas pipeline to the Pacific, but the left managed to shut it down. Geniuses.