Business leaders disappointed with LNG rejection
It took a relatively quick discussion for the New Mexico Public Regulation Commission on Thursday to unanimously reject a New Mexico Gas Co. proposal for what would’ve been the first liquefied natural gas storage facility of its kind in the state.
The rejection came to the dismay of different business leaders in the state. Some of the organizations that supported the facility included the Rio Rancho Regional Chamber of Commerce, New Mexico Chamber of Commerce, Albuquerque Regional Economic Alliance, Consumer Energy Alliance and the National Hispanic Energy Council.
They were heavily outnumbered by the hundreds of community activists, residents and elected officials who opposed the facility.
Jerry Schalow is the president and CEO of the Rio Rancho Chamber. He said an LNG unit would be hugely impactful as the state transforms to green energy over the next few decades.
“The LNG facility hopefully will be reconsidered in the future because it does offer energy security in New Mexico and for every New Mexican in the state,” Schalow said.
He echoed the position of the New Mexico Gas Co. that the facility would have created more energy stability in the state and helped shield New Mexicans from higher gas prices in colder months, an argument other business leaders voiced as well.
The reason is that the gas company could’ve bought gas in warmer months and stored it at the facility, so the utility — and therefore its customers — wouldn’t have to pay the higher prices that can come in winter.
Schalow said that would’ve helped all New Mexicans, from low-income households trying to keep their heat on to restaurants using gas stoves and ovens.
“It’s a benefit to all parties,” he said. “It’s a benefit to the residents, a benefit to the businesses. It’s a benefit to the state.”
Matthew Gonzales, New Mexico-based vice chair of the National Hispanic Energy Council, similarly said the facility would’ve created accessible, affordable and reliable energy for New Mexicans that’s close to home.
“Rio Rancho aligned perfectly with the National Hispanic Energy Councils vision of affordable, equitable energy development that helps reduce the 20% average higher energy burden Hispanics carry, while benefiting the state in terms of jobs and economic activity,” he said. “We urge the PRC to reconsider.”
Schalow said the facility also would’ve provided jobs. He pointed to Farmington, where communities lost their jobs when the massive San Juan Generating Station shut down a couple of years ago.
Community members and environmental advocates have repeatedly voiced safety concerns with the LNG facility, citing potential leaks, fires and explosions, in addition to more trucking in a densely populated area like Rio Rancho.
Schalow said the storage facility wouldn’t have been a threat to public safety. He said the natural gas pipelines already exist and it would’ve just created a holding area with no trucks coming in and out. He said there was a lot of misinformation around the proposed LNG facility.
It’s unclear if New Mexico Gas Co. will attempt to appeal the PRC’s decision.