Fortis inks LNG supply deal with Hawaiian Electric

Fortis of Canada said on Thursday that, through its Fortis Hawaii Energy unit, it has signed a deal to supply LNG to Hawaiian Electric Company for local power generation.

Under the agreement, Fortis would 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.

The agreement, however, outlines the conditions to be met and the necessary approvals to be received to allow the project to proceed, including government and regulatory approvals in both British Columbia and Hawaii and the approval of the merger of Hawaiian Electric and NextEra Energy Resources, Fortis said in a statement.

To support the agreement, a further expansion at FortisBC’s Tilbury LNG facility would be required. The expansion would include additional liquefaction equipment and a new 46,000 cbm storage tank, as well as a new power line so that FortisBC can continue to power its operations with electricity.

If all conditions are met and government, regulatory and internal approvals are received, expansion of the Tilbury LNG facility would commence in 2018, Fortis said.

LNG World News Staff