Project Overview
HG&E’s natural gas portfolio is made up of both firm pipeline capacity from the Tennessee Gas Pipeline and liquefied natural gas (LNG) which is stored at HG&E’s West Holyoke LNG Facility. During peak periods (typically the coldest days of the year when all customers are consuming high levels of energy), the West Holyoke LNG facility supplies approximately 40% of HG&E’s natural gas supply to customers. The facility enhances the reliability and flexibility of our natural gas portfolio - reducing our dependence on a single pipeline source. With increasing peak loads, due to severe weather and other impacts, HG&E is seeking to increase capacity at the LNG facility in order to ensure natural gas service is available when customers need it the most.
Operated by HG&E since 1971, the West Holyoke LNG facility was designed for five storage tanks but only four were installed when the site was developed (see facility image above). HG&E’s current proposal is to install the 5th storage tank on the site, as well as an additional vaporization system, all within the existing facility footprint. The facility has been operating safely and reliably for over fifty (50) years. No new pipelines or infrastructure will be required outside of the boundaries of the existing site. There will be very limited construction and operational impacts related to this project.
HG&E will be seeking approval for the LNG Infrastructure & Resiliency Project from the Massachusetts Energy Facilities Siting Board (EFSB), a public process that began in the fall of 2022 with constituent and stakeholder engagement. If approved, the approximate timeline for commissioning the facility would be in 2025. Consistent with the State of Massachusetts 2050 Decarbonization Roadmap, we look forward to working with the community and various stakeholders groups to ensure HG&E maintains the ability to provide dependable natural gas service throughout the energy transition that will occur over the next 26 years. For additional information please contact us at LNGproject@hged.com.
What is Proposed?
HG&E is proposing to install one new 70,000-gallon LNG storage tank at an existing LNG facility and upgrade monitoring and control systems in order to enhance system reliability and safety. There are currently four storage tanks at the facility, in operation since 1971, located in West Holyoke nestled in a large solar installation. The additional controls will provide redundancy and enhanced safety mechanisms.
In order to reliably meet customers’ energy needs over the next 20+ years, HG&E has developed a non-pipeline solution that would increase our LNG storage capacity within the existing footprint of the West Holyoke facility.
Why LNG?
As a way to ensure reliable energy service to Holyoke residences and businesses, HG&E augments its energy portfolio with LNG. For over 50 years, HG&E has safely operated the Holyoke facility and used LNG, stored in secure tanks, to meet the energy needs of our customers during periods of high demand. The additional controls will provide redundancy and enhanced safety mechanisms.
The ability to safely store and utilize LNG when system demand is high allows for uninterrupted service when pipeline demand is at capacity. In addition, LNG offers HG&E diversity and flexibility within the natural gas portfolio, reducing our dependence on a single pipeline source and fluctuating market costs.
Where is the Facility?
The LNG facility is located in West Holyoke, adjacent to HG&E's solar projects. The tank would be installed within the existing fence line, requiring no permanent alterations to the surrounding environment and in compliance with all applicable regulations to ensure system, environmental and public safety.
What are the Benefits?
HG&E’s LNG facility has many benefits for customers. Historically the facility was developed to provide supply back-up in the event of a pipeline interruption or constraint and afford customers with the most reliable service. Currently under peak demand HG&E’s system consumes 20,000 dth of gas per day. The existing LNG facility is capable of storing approximately 16,000 dth. Existing demand is 25% greater than available storage capacity. The addition would increase storage capacity to approximately 21,000 dth, sufficient to meet existing customer demand without curtailing firm gas customers in the event of a pipeline interruption.
This project, in combination with aggressive energy efficiency programs, will allow customers to apply for natural gas service when converting from oil or propane. HG&E will evaluate each application independently and work closely with customers to ensure there is not a viable, cost justifiable alternate solution that better positions the community to meet the State's clean energy goals.
