Fortis Inc. (TSX:FTS) has signed a 20-year agreement with Hawaiian Electric Company, Inc. to ship 800,000 metric tonnes of LNG annually to Hawaii, where it will be used to generate power.
The LNG will come from Fortis’ LNG plant on Tilbury Island in Delta, which is undergoing a $400 million expansion. The company plans to start making its first shipments in 2021.
"FortisBC is uniquely positioned to capitalize on the strong market demand for clean-burning B.C. natural gas as a bridge fuel in the transition to renewable energy production," said Fortis CEO Barry Perry.
"Our small-scale Tilbury facility fits well with the needs of customers like Hawaiian Electric and shipping from Canada's West Coast costs less than from other locations, including the U.S."
Hawaii currently relies on imported oil for 80% of its power generation, Fortis said in a new release. Hawaii has plans to eventually move to 100% renewables. LNG is a cleaner fuel than oil that can be used to back stop renewable energy, which is intermittent.
