Honolulu Star-Advertiser

Friday, December 13, 2024 75° Today's Paper


Top News

Hawaii Gas will bring in more LNG

CRAIG T. KOJIMA / APRIL 2014

State regulators approved Hawaii Gas’ plans to import more liquefied natural gas, the state’s only gas utility said Wednesday.

State regulators approved Hawaii Gas’ plans to import more liquefied natural gas, the state’s only gas utility said Wednesday.

Hawaii Gas filed an application on Oct. 16, 2014 with the Public Utilities Commission requesting a conversion of 30 percent of its current supply of synthetic natural gas to liquefied natural gas.

When it applied, Hawaii Gas said its 28,000 Oahu customers on the synthetic natural gas pipeline would save approximately $6 million per year and almost $90 million over the next 20 years.

Currently, Hawaii Gas manufactures synthetic natural gas from an oil derivative for its utility customers on Oahu and distributes propane to customers throughout the state.

Hawaii Gas has its sights set on full LNG conversion.

The gas utility announced in January it has an agreement with a supplier of liquefied natural gas to build the facilities needed to import bulk LNG into the state for $200 million. The bulk supply would meet all of Hawaii Gas customer needs and some electric generation.

Hawaii Gas is hoping to be the main supplier of LNG in the state if regulators decide to make the switch from low-sulfur fuel oil and coal now burned in Hawaii power plants. Hawaii Gas has said LNG would be cleaner than coal and oil and could be a “bridge fuel” as Hawaii moves toward its goal of 100 percent renewable electric generation by 2045.

Using LNG instead of oil to fire Hawaii power plants would have saved ratepayers $132 million in fuel costs last year, Hawaii Gas said.

The “binding bid” with the LNG supplier includes building the infrastructure for $200 million and supplying LNG for 15 years.

7 responses to “Hawaii Gas will bring in more LNG”

  1. aomohoa says:

    I sure wish I could have gas for cooking instead of electric.

  2. shanik says:

    no brainer

  3. jonn1 says:

    LNG: more, faster, please.

  4. saywhatyouthink says:

    So less than 2 years of savings would pay for the necessary LNG storage facilities. That’s about the best rate of return I’ve seen for an energy savings project. LNG is cheaper, cleaner and more efficient so it’s somewhat of a no-brainer as to whether or not Hawaii should do this. It’s hard to understand why anyone would not support LNG use as a bridge fuel until something better is feasible, which is a long time down the road.No doubt it will come down to money and who gives the most to the politicians that control the PUC.

Leave a Reply