Fortis’ Hawaiian LNG deal runs into difficulties
Fortis’ deal to supply liquefied natural gas to Hawaiian Electric Company for local power generation has hit a road block due to the Hawaii Public Utilities Commission’s dismissal of Hawaiian Electric’s merger with NextEra.
PUC informed in its statement that in a 2-0 decision Hawaiian Electric Companies and NextEra Energy’s merger deal has been rejected as the “applicants failed to demonstrate that the Application is reasonable and in the public interest.”
Fortis deal, signed in May to supply 800,000 metric tons of LNG per year from FortisBC’s Tilbury LNG facility in Delta, British Columbia, for a 20-year period, starting in 2021 had to fulfill certain conditions, one of which was the approval of the proposed merger of Hawaiian Electric and NextEra Energy.
Canadian LNG supplier said on Saturday it has been notified of a decision from the Hawaiian Public Utilities Commission adding that “at this time, all parties are reviewing the decision.”
However, when requesting the approval of the merger, Hawaiian Electric said that in case the merger is not approved it intends to pursue LNG opportunities on their own.
LNG World News Staff