(October 30, 2014 – NGI) Hawaii Gas Files LNG Plans With State Regulators (By: Richard Nemec)
Earlier this year, the gas utility, which operates the Kapolei SNG plant to satisfy Hawaii's gas fuel needs, received an initial containerized LNG shipment from Newport Beach, CA-based Clean Energy Fuels Corp. (see Daily GPI, April 10). It was projected by the utility to be the start of regular shipments from the mainland, allowing Hawaii Gas to use the LNG as a backup for its SNG operations.
In the filing to the Hawaii Public Utilities Commission (PUC) in mid-October, Hawaii Gas said it has secured LNG supplies from sources in both the United States and Canada to be delivered in weekly containerized shipments. The LNG will be regasified and injected into the utility's existing pipeline infrastructure, a utility spokesperson said.
Separately on Tuesday, an analysis by RBN Energy LLC's Housley Carr predicted that Hawaii will be making a multi-year transition from an oil-based economy to one supported largely by LNG. That would include supplying the state’s electric utility, Hawaiian Electric. Currently, the SNG is produced from naphtha, a byproduct of the state’s two oil refineries.
If the latest application by Hawaii Gas is approved by the PUC, regular LNG deliveries to its Oahu distribution pipeline customers could start by late next year, the utility spokesperson said. Savings for its customers will total about $6.4 million annually due to the lower cost for the LNG, compared with SNG made from naphtha.
Citing fuel source diversity and enhanced reliability, Hawaii Gas CEO Alicia Moy said the utility's move to LNG is "a key step toward maximizing energy security during a time of energy transition in Hawaii."
Carr said Hawaii Gas estimates that 20,000 gal/d of LNG, or 1.64 MMcf/d, can displace 30% of the SNG now being produced, and he estimated that about 3.3 times a much -- 67,000 gal/d, or 5.5 MMcf/d -- is needed to displace all of the SNG. "That's equal to about 42,000 metric tons/year of LNG," he said.
Read the full story here: http://www.naturalgasintel.com/articles/100238-hawaii-gas-files-lng-plans-with-state-regulators
