Hawaii Gas Files With PUC To Diversify Fuel Supply
HONOLULU – Hawaii Gas filed an application on Oct. 16, 2014 with the Hawai‘i Public Utilities Commission (PUC) to convert up to 30 percent of the synthetic natural gas (SNG) production at its SNG plant on O‘ahu to lower-cost and cleaner-burning liquefied natural gas (LNG).
Hawaii Gas has secured LNG from two sources in the U.S. and Canada and will transport the LNG each week to Hawai‘i on container ships. Once the LNG arrives on O‘ahu, it will be regasified and injected into Hawaii Gas’ existing pipeline infrastructure at the company’s SNG plant. The filing limits the amount of LNG to a volume of approximately two containers per day, depending on demand.
If the application is approved by the PUC, Hawaii Gas could begin delivering LNG to its O‘ahu pipeline customers by late 2015. Savings to its utility customers on the SNG pipeline system would be approximately $6.4 million per year due to a reduction in the annual cost of fuel.
“Converting a portion of our SNG production to LNG will further diversify our fuel supply and enhance reliability for our customers, as well as provide them with near-term cost savings by leveraging existing pipeline infrastructure,” said Alicia Moy, president and CEO of Hawaii Gas. “This initiative is a key step toward maximizing energy security during a time of energy transition in Hawai‘i.”
About Hawaii Gas
Hawaii Gas is the only government-franchised, full-service gas company manufacturing and distributing gas in Hawai‘i. The company’s market includes Hawai‘i’s approximately 1.4 million residents and nearly 8 million visitors. Hawaii Gas manufactures synthetic natural gas, or SNG, for its utility customers on O‘ahu, and distributes liquefied petroleum gas, or LPG (propane), to utility, tank and bottled gas customers throughout the state’s six primary islands. Hawaii Gas is the first company to bring liquefied natural gas, or LNG, to Hawai‘i. It uses LNG as a backup fuel for its SNG distribution system. Hawaii Gas is a wholly owned indirect subsidiary of Macquarie Infrastructure Company. For additional information, please visit www.hawaiigas.com.