Bechtel to suspend talks over natural gas plant on Mare Island
Friday January 31, 2003VALLEJO, Calif. (AP) A proposal for a $1.5 billion complex on Mare Island that includes a liquefied natural gas plant has been put on hold.
San Francisco-based Bechtel Enterprise Holdings decided to suspend negotiations with Vallejo over the plant, citing a flat economy and uncertain energy sector. Bechtel's former partner, Shell Gas & Power, pulled out of the proposal two weeks ago and Bechtel now wants to do a feasibility study of the project.
On Tuesday, the Vallejo city manager is expected to recommend that the City Council stop talks with the company, and the council is expected to vote on whether to allow the feasibility study.
Bechtel has also said that it believes the city is having a hard time fulfilling its end of the deal, but city officials say they have kept their promise.
City spokesman Mark Mazzaferro said Vallejo's only promise was to look at the proposal for the 600 megawatt to 900 megawatt plant, and that the city didn't commit to anything else.
Residents have complained about the proposed project for months, saying it poses too many health and safety risks.
If the project doesn't go through, the city would look at other plans for the southern end of Mare Island, which housed a naval shipyard that closed in 1996. The original plan included preserving open space.
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