Gov. Arnold Schwarzenegger rejected on Friday Australian conglomerate BHP Billiton’s proposal to build a giant liquefied natural gas terminal off the Ventura County and Malibu coast, dealing a death blow to the controversial project.

BHP’s proposal to build an $800 million floating platform to offload liquefied natural gas and build pipelines to existing shoreside facilities had already been rejected by the California Coastal Commission and the California Lands Commission on environmental grounds. Critics contended the platform would cause air pollution and could damage marine life.

Schwarzenegger, in a letter to the U.S. Maritime Administration, said that while liquefied natural gas is an essential component of California’s energy portfolio, the Cabrillo Port proposal failed to “meet the strict environmental standards California demands to continue to improve our air quality, protect our coast and preserve our marine environment.”

BHP Billiton spokesman Patrick Cassidy said the company was “disappointed” with Schwarzenegger’s decision. He said the company was now considering its next steps. But given Schwarzenegger’s letter Friday and the two previous decisions, it is unlikely BHP Billiton will be able to go ahead with the project in any form.

There are three other LNG proposals at various planning stages: Northern Star Natural Gas’s Clearwater Port off the Ventura County coast; Woodside Energy’s offshore loading buoy off the Los Angeles County coast and Esperanza Energy LLC’s proposed platform off the Long Beach coast.