By Staff Reports
(Honolulu) – HAWAI’IGAS today received a decision from the Federal Energy Regulatory Commission (FERC) that could allow HAWAI’IGAS to bring liquefied natural gas (LNG) to the state and reduce its reliance on imported oil.
“Now that the FERC is releasing jurisdiction for this phase of the operation to the state, HAWAI’IGAS will complete the process of obtaining the appropriate state and local permits so that the service can commence before the anticipated closure date of the Tesoro refinery,” said Jeff Kissel, CEO of HAWAI’IGAS.
As Hawaii’s only franchised gas utility, the Company is already in compliance with most of the necessary state and federal statutes required for the safe transport and use of LNG. It must also seek approval from the Hawaii Public Utilities Commission.
In anticipation of receiving the required approvals, HAWAI’IGAS has secured the equipment necessary for the vaporization of LNG and two LNG shipping containers. The company plans to employ up to 20 containers in a continuous cycle of transport of liquefied natural gas from the Continental U.S. to Hawaii. HAWAI’IGAS has prepared its staff, developed safety procedures and begun the process of training and educating essential first responders to assure the safe and reliable operation of the equipment and gas service. This is a critical part of the process that the company uses to put new gas products in service.
HAWAI’IGAS expects to be prepared to receive a first container of LNG in about 60 days, or in sufficient time to provide emergency back-up service prior to the April 30 closure of the Tesoro refinery.
At current prices LNG is about 25% less expensive than the feedstock used to produce the synthetic natural gas (SNG) distributed to HAWAI’IGAS utility customers.