But even if Schwarzenegger approves the project, BHP would still need to take legal action to overturn the rulings by two state regulatory bodies rejecting the proposal.

The State Lands and California Coastal commission ruled against the Cabrillo project arguing the 14 storey-high terminal, to be set about 22.5km off Malibu, posed various environmental problems, including air pollution.

But under the US Deepwater Port Act, Schwarzenegger has the power to veto or approve the LNG project.

Schwarzenegger has three options: he could reject the project, which would essentially kill it outside of some sort of federal government intervention; he could approve it, giving BHP a glimmer of hope by allowing it to fight the regulatory bodies' decisions; or he could do nothing, which would have the same effect as an approval.

The Governor has previously made statements in support of LNG as an energy source but has never commented on Cabrillo Port specifically, except to say he would review all the information.

And earlier this month, Schwarzenegger signed a memorandum of understanding with Victorian Premier Steve Bracks to fight global warming.

The Cabrillo project, which would provide a market for BHP and ExxonMobil’s Scarborough gas field off the Western Australian coast, has received widespread criticism from residents in California, including many celebrities.

Local councils and Malibu residents, including celebrities Pierce Brosnan, Martin Sheen, Olivia Newton-John and Tom Hanks, have led protests and campaigned strongly against the plan.

If it were to go ahead, the LNG terminal would process about 800 million cubic feet of natural gas daily, or about 12% of California’s daily gas needs.