Thursday, November 21, 2024
Hawai'i Free Press

Current Articles | Archives

Thursday, September 4, 2014
Refinery Switch: HECO Dumps Par Petroleum for Chevron
By News Release @ 8:05 PM :: 6612 Views :: Energy

SEC Form 8K filed by HECO September 4, 2014

On August 27, 2014, Chevron Products Company, a division of Chevron U.S.A. Inc. (Chevron), and Hawaiian Electric Company, Inc. (Hawaiian Electric) entered into a first amendment (Amendment) to the Low Sulfur Fuel Oil Supply (LSFO) Contract, which terminates on December 31, 2016 and may automatically renew for annual terms thereafter unless earlier terminated by either party. The Amendment reduces the price of fuel above certain volumes, allows for increases in the volume of fuel, and modifies the specification of certain petroleum products supplied under the contract. In addition, Chevron agreed to supply a blend of LSFO and ultra-low sulfur diesel as soon as January 2016 (for supply through the end of the contract term, December 31, 2016) to help Hawaiian Electric meet more stringent federal Environmental Protection Agency air emission requirements known as Mercury and Air Toxics Standards.

The Amendment is subject to approval of the Public Utilities Commission of the State of Hawaii, and can be terminated if approval is not received by April 15, 2015.

On August 27, 2014, Chevron and Hawaiian Electric, Maui Electric Company, Limited and Hawaii Electric Light Company, Inc. entered into a third amendment to the Inter-Island Industrial Fuel Oil and Diesel Fuel Supply Contract, which amendment extended the term of the contract through December 31, 2016 and may automatically renew for annual term thereafter unless earlier terminated by either party.

Item 1.02 Termination of a Material Definitive Agreement

On August 28, 2014, Hawaiian Electric provided notice to Hawaiian Independent Energy LLC (HIE) that it will not renew the LSFO contract that was assigned to HIE from Tesoro Hawaii Corporation. The term of the contract is through December 31, 2014, and renews automatically unless terminated by either party.

---30---

Par Petroleum Corporation Responds to HECO Announcement

News Release from Par Petroleum September 5, 2014

HOUSTON — Par Petroleum Corporation (NYSE MKT: PARR) announced today that one of Hawaii Independent Energy (“HIE”)’s supply contracts with Hawaiian Electric Company, Inc. (“HECO”) would not be renewed when it expires in December.

“HECO’s decision to discontinue its fuel supply agreement with HIE is unfortunate. However, we intend to remain competitive in this market, and we are aggressively pursuing other outlets for our products,” said William Monteleone, Par Petroleum Corporation’s Chief Executive Officer. “We recently announced a one-year contract to supply the military with aviation turbine fuel commencing October 1, 2014 with estimated revenue of more than $160 million. Additionally, the pending acquisition of Mid-Pac, which we believe will close by year-end, will add an estimated 4,000 barrels per day of gasoline.”

“We believe these actions demonstrate our continued commitment to competing for business in Hawaii and we look forward to a long and successful relationship,” concluded Mr. Monteleone.

  *   *   *   *   *

PARR Form 8K Filed September 5, 2014:

On September 5, 2014, the Company issued a press release responding to the recent announcement by HECO that it would not renew one of its contracts with Hawaii Independent Energy ("HIE"), Par's wholly owned subsidiary, when the contract expires on December 31, 2014.

Although the HECO contract is significant to HIE, the contract represented less than 8% of the Company's refining segment revenue for the first six months of 2014. The HECO contract contains confidentiality provisions which restrict the disclosures that the Company can make. However, the HECO contract was entered into in the ordinary course of business and represents only a portion of HIE's low sulfur fuel oil sales. The Company continues to discuss the situation with HECO.

  *   *   *   *   *

SA: Chevron Deal Will Save Ratepayers Average of $2.40/mo

PBN: CEO of Hawaii's largest oil refinery stepping down

PBN: Asking price for Hawaii's Aloha Petroleum likely $350M, source says


Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

MentalIllnessPolicy.org

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii

Obookiah

OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

RailRipoff.com

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

SenatorFong.com

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii