Hawaii Gas plan aims to lower costs

Hawaii Gas, the state’s only regulated gas utility, is seeking proposals for the bulk supply of liquefied natural gas as part of a plan to help lower the cost of energy for existing consumers and expand its service in the state.

The gas utility’s LNG plan focuses on the company’s evolution to serve the statewide demand for power generation in addition to the traditional use of natural gas for heating and transportation uses.

Hawaii Gas has invited LNG suppliers worldwide to submit proposals before the Feb. 16 deadline.

The company is looking to accommodate changes in LNG demand over time as Hawaii’s energy efficiency and renewable energy use increase, Hawaii Gas said in a press release.

Hawaii Gas has been working with key stakeholders on developing an LNG plan that will help reduce energy costs.

The utility would supply LNG in bulk to Hawaii at the lowest possible cost. Bulk LNG supply and delivery could be put in place by late 2018 or 2019, said Joseph Boivin Jr., senior vice president of business development and corporate affairs at Hawaii Gas.

"LNG is the ideal versatile low-cost and low-carbon emission fuel that supports traditional direct uses of natural gas for heating, cooling, cooking and lighting, as well as power generation and transportation," he said. "The supply agreements that we are seeking will be flexible to accommodate changes in LNG demand over time as Hawaii’s energy efficiency and renewable energy use increase. The plan will leverage our existing infrastructure as the state’s only regulated gas utility."

In October, the company filed an application with the state Public Utilities Commission to convert 30 percent of its synthetic natural gas production at its plant in Kapolei to LNG.

The filing limits the amount of LNG to approximately two containers per day, depending on demand. In April, Hawaii Gas became the first company to bring liquefied natural gas to the state after the PUC approved Hawaii Gas’ request to import LNG in containers for use as a backup fuel for its synthetic natural gas operations.