Macquarie Infrastructure Company's Hawaii Gas business clears federal hurdle to transporting containerized LNG
NEW YORK, NY, January 18, 2013 - Macquarie Infrastructure Company's (NYSE: MIC) HAWAI'I GAS business received a decision from the Federal Energy Regulatory Commission (FERC) that is expected to accelerate HAWAI'I GAS' proposal to transport containerized liquefied natural gas (LNG) from the U.S. mainland to Hawaii.
In a decision published yesterday, the FERC declined to assert jurisdiction over HAWAI'I GAS' proposal, thereby removing a potential federal hurdle to the project. HAWAI'I GAS sought FERC approval in an August 2012 filing.
The project remains subject to satisfaction of state and local regulatory requirements.
"The FERC's decision not to assert jurisdiction over the proposed transportation of LNG to Hawaii is a positive step for both the company and the Hawaiian economy," said James Hooke, Chief Executive Officer of MIC. "The decision should hasten the implementation of the LNG program at HAWAI'I GAS and opens the door to reducing the cost of energy in Hawaii."
At current prices LNG is about 25% less expensive than the feedstock used to produce the synthetic natural gas distributed to HAWAI'I GAS' utility customers.
In anticipation of the required approvals, HAWAI'I GAS has secured the equipment necessary for the vaporization of LNG and two LNG shipping containers. The company plans to employ up to 20 containers in a continuous cycle of transport of liquefied natural gas from the U.S. mainland to Hawaii.
HAWAI'I GAS expects to be prepared to receive a first container of LNG in as little as 60 days, subject to its having obtained required approvals from state and local authorities.
About Macquarie Infrastructure Company
Macquarie Infrastructure Company owns, operates and invests in a diversified group of infrastructure businesses providing basic, everyday services, to customers in the United States. Its businesses consist of three energy-related businesses including a gas production and distribution business (HAWAI'I GAS), a controlling interest in a district energy business (District Energy), and a 50% interest in a bulk liquid storage terminal business (International-Matex Tank Terminals). MIC also owns and operates an aviation-related airport services business (Atlantic Aviation). The Company is managed by a wholly-owned subsidiary of the Macquarie Group. For additional information, please visit the Macquarie Infrastructure Company website at www.macquarie.com/mic. MIC-G
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