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Hawaii Gas brings in first shipment of containerized LNG

By Star-Advertiser Staff

LAST UPDATED: 3:07 p.m. HST, Apr 7, 2014

Hawaii Gas has brought its first containerized shipment of liquefied natural gas to Hawaii.

Crews from Hawaii Gas utility began processing the shipment at Honolulu Harbor Monday, using special equipment to convert the LNG back into its gaseous form for use by the utility's customers.

The shipment is part of a Hawaii Gas program to provide a backup to the synthetic natural gas it makes at its plant in Campbell Industrial Park. The 40-foot tank shipped from California contains 10,000 gallons of LNG, or the equivalent of about 12 percent of what Hawaii Gas produces per day in synthetic natural gas. Hawaii Gas expects to ship in one container every two to four weeks.

The state Public Utilities Commission on March 6 approved Hawaii Gas to bring LNG to Hawaii using three shipping containers. Company officials said they plan to seek PUC permission later this year to bring in more containers.

Hawaii Gas' long range plans call for working with Hawaiian Electric Co. and others to bring in large amounts of LNG in specialized ships that could be used for power generation. LNG could be used to generate electricity for 30 percent to 50 percent below what it costs by burning oil, a Hawaii Gas official said.

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