Hawaii utility considers liquefied natural gas

Published on NewsOK Modified: March 21, 2014 at 4:32 pm •  Published: March 21, 2014
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HILO, Hawaii (AP) — Hawaiian Electric Co. is considering using liquefied natural gas to generate power.

The Hawaii Tribune-Herald (http://is.gd/iYtE2Q) says the utility has issued a request for proposals for the supply and delivery of as much as 800,000 tons of LNG annually.

LNG would be used to offset the use of oil at power plants on the Big Island, Maui, Oahu, Lanai and Molokai.

The utility says the switch would mean cleaner and less expensive fuel.

According to the request for proposals, fuel costs account for 70 percent of electric rates on the islands.

Deadlines for RFP submissions are May 16 for LNG supply and May 23 for LNG logistics services.

The utility is aiming to submit a proposed contract by August to the state Public Utilities Commission.