SALEM, Ore. -- The Oregon Department of Energy says the state will need more natural gas but needn't rely on the imported liquefied product.

Governor Kulongoski had asked the Oregon Department of Energy to review the state's need, alternatives and the financial and environmental impacts of natural gas on the state.

In yesterday's report the department said proposed pipelines from the Rocky Mountains can meet the state's increased demand for less money that liquefied gas from three proposed terminal in Oregon can.

Kulongoski asked for the review after the Federal Energy Regulatory Commission dismissed requests by him and Oregon's congressional delegation to take a more comprehensive look at natural gas needs and issues for the state.

In 2005 the federal government took over citing authority for LNG plants from the states, which remains a sore point in Oregon.

The state report said that while natural gas will continue to be needed, "the three LNG terminals proposed in Oregon are not the only viable option."