Categorized | Business, Energy

HawaiiGAS clears hurdle to import containerized LNG

MEDIA RELEASE

HawaiiGAS has received a decision from the Federal Energy Regulatory Commission (FERC) that could allow HawaiiGAS to bring liquefied natural gas (LNG) to the state and reduce its reliance on imported oil.

“Now that the FERC is releasing jurisdiction for this phase of the operation to the state, HawaiiGAS will complete the process of obtaining the appropriate state and local permits so that the service can commence before the anticipated closure date of the Tesoro refinery,” said Jeff Kissel, CEO of HawaiiGAS.

As Hawaii’s only franchised gas utility, the Company is already in compliance with most of the necessary state and federal statutes required for the safe transport and use of LNG. It must also seek approval from the Hawaii Public Utilities Commission.

In anticipation of receiving the required approvals, HawaiiGAS 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 mainland to Hawaii.

HawaiiGAS has prepared its staff, developed safety procedures and begun the process of training and educating essential first responders to assure the safe and reliable operation of the equipment and gas service.

This is a critical part of the process that the company uses to put new gas products in service.

HawaiiGAS expects to be prepared to receive a first container of LNG in about 60 days, or in sufficient time to provide emergency back-up service prior to the April 30 closure of the Tesoro refinery.

At current prices, LNG is about 25 percent less expensive than the feedstock used to produce the synthetic natural gas (SNG) distributed to HawaiiGAS utility customers.

The Gas Company, doing business as HawaiiGAS, is a wholly owned subsidiary of Macquarie Infrastructure Company. HawaiiGAS is Hawaii’s only government franchised full-service gas company, manufacturing and distributing gas in Hawaii.

The market includes Hawaii’s approximately 1.4 million residents and approximately 7.3 million visitors. HawaiiGAS manufactures synthetic natural gas, or SNG, for its utility customers on Oahu, and distributes Liquefied Petroleum Gas, or LPG, to utility and tank and bottled gas customers throughout the state’s six primary islands.

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 (Hawaii 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.

— Find out more:
www.hawaiigas.com
www.macquarie.com/mgl/com/mic

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