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Acquisition of Hawaiʻi Gas Paves Way for Clean Energy Transformation

07/21/22

HONOLULU - July 21, 2022 – Hawaiʻi Gas, the state's only franchised gas utility and largest propane distribution business, announced today that its ownership was transferred to an affiliate of Argo Infrastructure Partners, LP (Argo), as a result of its acquisition of Macquarie Infrastructure Holdings, LLC (NYSE: MIC). The acquisition was completed after receipt of the approval on June 29th from the Hawaiʻi Public Utilities Commission (PUC).

Argo is an independent infrastructure fund manager with a long-term approach to infrastructure investing and an investment philosophy that seeks to combine sound investment return with responsible and sustainable investing. The acquisition of Hawaiʻi Gas is underpinned by strong environmental, social and governance mandates that require investments to meet a high standard of conduct and strive for sustainability in their operations. Under Argo’s ownership, Hawaiʻi Gas will continue to focus on initiatives aimed at reducing greenhouse gas emissions.

“Argo is pleased with the decision by the PUC and looks forward to having Hawaiʻi Gas join its portfolio of companies and supporting its efforts to improve sustainability and reduce its carbon footprint,” said Richard Klapow, managing director for the firm. “Argo fully supports the company's clean energy plan and intends to provide access to capital to execute its clean energy transformation consistent with Hawaiʻi’s climate objectives, all while continuing to provide safe and reliable energy services to its customers.”

“We thank the PUC and the many parties that contributed to the rigorous review and approval of this transaction,” said Alicia Moy, president and CEO of Hawaiʻi Gas. "This decision paves the way for Hawaiʻi Gas to accelerate its renewable energy plans and continue our pioneering work with renewable natural gas and hydrogen, both critical clean energy sources for our future.”

The acquisition of Hawaiʻi Gas is expected to be seamless for customers and will not affect the company’s employees, wages or union relationship. The company headquarters location, local management team and Hawaii-based members of its Board of Directors will not change. Assets of Hawaiʻi Gas, including the Waihonu Solar Farm, will also be acquired by Argo.

“We look forward to working with Hawaiʻi Gas and its new owner, Argo Infrastructure Partners, to advance our state’s climate goals and pursue innovations to support a resilient, clean energy future,” said Scott Glenn, chief energy officer, Hawaii State Energy Office.

“As we begin a new chapter with Argo marking the 118th year of our company, we also express our appreciation for the strong and steady support Hawaiʻi Gas has received from Macquarie Infrastructure Holdings, LLC, over the past 16 years,” said Moy.

Macquarie Infrastructure Holdings, LLC (NYSE:MIC) acquired Hawaiʻi Gas in 2006.

Hugh Au, Argo senior director added, “We are excited to work with management and other stakeholders throughout the state to ensure Hawai’i Gas’ continued success.”

About Argo Infrastructure Partners, LP

Argo Infrastructure Partners is an independent infrastructure fund manager with along-term approach to infrastructure investing. Argo invests in high-quality infrastructure businesses and assets that provide essential services to their communities and achieve sustainable cash yields over their long operational lives, including investments in utilities, renewable energy, digital infrastructure, and other long duration infrastructure assets. Argo’s investment philosophy aims to couple sound investment return with responsible and sustainable investing. As of June 30, 2022, Argo manages over $5 billion in assets on behalf of its investor partners. For more information, visit www.argoip.com.

About Hawaiʻi Gas

Hawaiʻi Gas is the only government-franchised, full-service gas company manufacturing and distributing gas in Hawaiʻi. Hawaiʻi Gas manufactures synthetic natural gas, or SNG, and renewable natural gas, or RNG, for its utility customers on Oʻahu, and distributes liquefied petroleum gas, or LPG (propane),to utility, tank, and bottled gas customers throughout the state’s six primary islands. It also produces RNG at their award winning, Honouliuli WastewaterTreatment Plant on Oʻahu. Hawaiʻi Gas is owned by Argo Infrastructure Partners, an independent infrastructure fund manager with a long-term approach to responsible and sustainable investing. For more information, visit www.hawaiigas.com.

 

Contact

Coreen Lee

Phone:(808) 535-4714

clee@hawaiigas.com

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