Macquarie Infrastructure Company’s (NYSE: MIC) Hawai’i Gas business received a decision from the Federal Energy Regulatory Commission (FERC) that is expected to accelerate Hawai’i Gas’ proposal to transport containerized liquefied natural gas (LNG) from the U.S. mainland to Hawaii.
In a decision published yesterday, the FERC declined to assert jurisdiction over Hawai’i Gas’ proposal, thereby removing a potential federal hurdle to the project. Hawai’i Gas sought FERC approval in an August 2012 filing.
The project remains subject to satisfaction of state and local regulatory requirements.
“The FERC’s decision not to assert jurisdiction over the proposed transportation of LNG to Hawaii is a positive step for both the company and the Hawaiian economy,” said James Hooke, Chief Executive Officer of MIC. “The decision should hasten the implementation of the LNG program at Hawai’i Gas and opens the door to reducing the cost of energy in Hawaii.”At current prices LNG is about 25% less expensive than the feedstock used to produce the synthetic natural gas distributed to Hawai’i Gas’ utility customers. In anticipation of the required approvals, Hawai’i Gas 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 U.S. mainland to Hawaii. Hawai’i Gas expects to be prepared to receive a first container of LNG in as little as 60 days, subject to its having obtained required approvals from state and local authorities. About Macquarie Infrastructure Company Macquarie Infrastructure Company owns, operates and invests in a diversified group of infrastructure businesses providing basic, everyday services, to customers in the United States. Its businesses consist of three energy-related businesses including a gas production and distribution business (Hawai’i Gas), a controlling interest in a district energy business (District Energy), and a 50% interest in a bulk liquid storage terminal business (International-Matex Tank Terminals). MIC also owns and operates an aviation-related airport services business (Atlantic Aviation). The Company is managed by a wholly-owned subsidiary of the Macquarie Group. For additional information, please visit the Macquarie Infrastructure Company website at www.macquarie.com/mic. MIC-G Forward-Looking Statements This filing contains forward-looking statements. MIC may, in some cases, use words such as "project”, "believe”, "anticipate”, "plan”, "expect”, "estimate”, "intend”, "should”, "would”, "could”, "potentially”, or "may” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Forward-looking statements in this release are subject to a number of risks and uncertainties, some of which are beyond MIC’s control including, among other things: changes in general economic or business conditions; its ability to service, comply with the terms of and refinance debt, successfully integrate and manage acquired businesses, retain or replace qualified employees, manage growth, make and finance future acquisitions, and implement its strategy; its shared decision-making with co-investors over investments including the distribution of dividends; its regulatory environment establishing rate structures and monitoring quality of service, demographic trends, the political environment, the economy, tourism, construction and transportation costs, air travel, environmental costs and risks, fuel and gas costs; its ability to recover increases in costs from customers, reliance on sole or limited source suppliers, risks or conflicts of interests involving its relationship with the Macquarie Group and changes in U.S. federal tax law.
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