- Associated Press - Thursday, May 7, 2015

PORTLAND, Ore. (AP) - Mayor Charlie Hales says he has asked a Canadian company to withdraw its proposal for a propane terminal at the port of Portland.

In a statement Thursday, Hales said he changed his mind about the terminal project because it doesn’t meet the city’s high environmental standards and values.

Critics have called the terminal dangerous and harmful to the environment, saying it would release 3 million to 5 million metric tons of carbon dioxide annually. Hundreds of people have protested against the project in Portland.

Pembina Pipeline Corp., of Calgary, Alberta, plans to ship propane derived from natural gas in western Canada. It would go by rail to the Portland terminal, where it would be stored in tanks then loaded on ships to Asia.

The company said in a statement that it does not plan to withdraw its project. The proposal will come before the City Council on June 10. The council will hold a public hearing and vote on whether to amend zoning at the Port of Portland’s Terminal 6 to allow the plan to proceed.

Pembina said it has addressed all safety concerns related to the terminal and “demonstrated the project will adhere to all safety and seismic code standards and all environmental standards and regulations.”

The company said its project would help developing countries transition from burning fuels like coal and wood to using propane, which has fewer carbon emissions.

Port of Portland officials said they continue to support the Pembina terminal, despite the mayor’s change of heart. They said the loss of the $500 million project would mean forfeited tax revenue, lost jobs, and negative implications for land use and trade policy as well as business recruitment efforts.

According to the port, the terminal would result in $12 million in tax revenue the first year of operation, 600 construction jobs and 40 permanent jobs.


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