He echoed comments by the California Coastal Commission and State Lands Commission, which both turned down the proposal for off the coast of Southern California last month. Schwarzenegger, a Republican, said the state does need additional gas supplies.


The governor's decision, announced today in an e-mailed statement, may terminate Melbourne-based BHP's more than three- year pursuit for approval of the project. The facility would process liquefied natural gas, or LNG.

``Liquefied natural gas can and must be an important addition to California's energy portfolio,'' Schwarzenegger said. ``However, any LNG import facility must meet the strict environmental standards California demands.''