Hawaiian Electric request LNG supply deal approval from PUC

Following its LNG supply deal with Fortis of Canada, Hawaiian Electric Companies requested Hawai’i Public Utilities Commission to review and approve the agreement to import LNG for electricity generation to O’ahu, Hawai’i Island and Maui.

Hawaiian Electric intends to use LNG for power generation starting in 2021, calling it a suitable fuel for its transition from using oil to 100 percent renewable energy in 2045.

The proposed merger of Hawaiian Electric with NextEra Energy depends on PUC’s approval of the LNG supply deal, the utility informed in its statement. However, if the merger is not approved Hawaiian Electric Companies intends to pursue LNG opportunities on their own.

Hawaiian Electric intends to convert existing generating units at Kahe Power Plant on O’ahu, Mā’alaea on Maui, and Keahole and Hāmākua Energy Partners on Hawai’i Island, to run on natural gas. Investment in the Kahe Power Plant would reach $859 million.

In addition, the utility would have to invest further $117 million for LNG containers, but the company stressed that no new infrastructure off or onshore Hawai’i would have to be developed.

Ron Cox, Hawaiian Electric vice president for power supply said, “the proposal will allow us to integrate increasing amounts of renewable energy at much lower cost while providing more reliable service for our customers. Further, our plan keeps new LNG infrastructure, both on- and off-shore, to a minimum and preserves flexibility to reduce LNG imports as renewable energy increases.”

The utility estimates using natural gas could bring savings from $850 million to $3.7 billion through 2045.

Hawaiian Electric further adds that the vessels and trucks (owned by others) and the containers to import LNG under this plan are modular and movable so a significant portion can be resold or repurposed when no longer needed to serve power generation in Hawai’i. The vessels themselves would run on liquefied natural gas.

LNG World News Staff