Argo Infrastructure Partners is set to acquire Hawaii Gas
Hawaii Gas, the state’s only franchised gas utility and largest propane distribution business, will be acquired by Argo Infrastructure Partners LP in a transaction that is expected to close in the first half of 2022, the company announced Monday.
Hawaii Gas’ employee count, wages and union relationship will not be affected by the acquisition, according to the company, which has offices statewide, including on Maui, Molokai and Lanai. Its headquarters location, management team and Hawaii-based directions will also remain in place. Hawaii Gas’ other, smaller clean energy businesses, including the Waihonu Solar Farm on Oahu, will also be acquired by Argo.
“We believe that the change of ownership will be seamless for our commercial and residential customers, since neither our regulated rates nor daily operations will be affected,” Hawaii Gas CEO and President Alicia Moy said in a news release. “I’m pleased that Argo has expressed strong support for the utility’s efforts to increase its renewable and zero-carbon emission energy sources, such as hydrogen, and for its support of our clean energy plan.”
Argo is an investor in utility infrastructure with a longstanding track record of sustainable investing, the news release said. Its acquisition of Hawaii Gas is subject to approval by the Hawaii Public Utilities Commission and other customary conditions.
Argo will appoint a qualified Hawaii resident to its board of directors so that the state’s views and culture are fully understood, considered and continued under Argo’s ownership, the news release said.
“Argo seeks to invest in well-managed utilities that are moving us toward a sustainable future,” said Richard Klapow, managing director for the firm. “We fully support the State of Hawaii’s goal of carbon neutrality by 2045 and Hawaii Gas’ contributions to this goal, while continuing to provide safe and reliable energy services to residents and businesses. We are firmly committed to the environmental leadership of the state and Hawaii Gas.”
Hawaii Gas manufactures synthetic natural gas and renewable natural gas for utility customers on Oahu and distributes liquefied petroleum gas to utility, tank and bottled gas customers throughout the state’s six primary islands. The company is a wholly owned indirect subsidiary of Macquarie Infrastructure Corporation.