Hawaii Gas To Be Acquired By Argo Infrastructure Partners
News Release from Hawaii Gas 07/14/2021
HONOLULU - June 14, 2021 - Hawaii Gas, the state's only franchised gas utility and largest propane distribution business, will be acquired by Argo Infrastructure Partners, LP ("Argo"), an investor in utility infrastructure with a longstanding track record of sustainable investing. The transaction is expected to close in the first half of 2022, subject to approval by the Hawaii Public Utilities Commission and other customary conditions.
"Argo seeks to invest in well-managed utilities that are moving us toward a sustainable future," said Richard Klapow, managing director of the firm. "We fully support the State of Hawaii's goal of carbon neutrality by 2045 and Hawai Gas' contributions to this goal, while continuing to provide safe and reliable gas energy services to residents and businesses. We are firmly committed to the environmental leadership of the state and Hawaii Gas."
"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," said Alicia Moy, president and CEO of Hawaii Gas. "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."
Hawaii Gas' employee count, wages and union relationship will not be affected by the acquisition. The company's headquarters location, management team, and Hawaii-based directors will also remain in place. Hawaii Gas' other, smaller clean energy businesses, including the Waihonu Solar Farm, will also be acquired by Argo.
Argo will appoint a qualified resident of Hawaii to its board of directors so that the State's views and culture are fully understood, considered and continued under Argo's ownership.
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About Argo Infrastructure Partners, LP
Argo is an independent infrastructure investment firm with a focus on utilities and other high-quality, long-duration infrastructure assets. Argo currently has ~$5 billion of assets under management in 14 infrastructure assets and businesses in North America. Argo’s investment philosophy aims to couple sound investment return with responsible and sustainable investing. This includes integrating environmental, social, and governance (ESG) best practices into asset selection and ongoing asset management processes and providing detailed reporting to investors and stakeholders on ESG performance. Argo participates in GRESB, a global ESG benchmark for real assets as well as membership in both the GIIA (Global Infrastructure Investor Association) and the LTIIA (Long Term Infrastructure Investors Association).
About Hawaii Gas
Hawaii Gas is the only government-franchised, full-service gas company manufacturing and distributing gas in Hawaii. Hawaii Gas manufactures synthetic natural gas, or SNG, and renewable natural gas, or RNG, for its utility customers on Oahu, and distributes liquefied petroleum gas, or LPG (propane), to utility, tank and bottled gas customers throughout the state’s six primary islands. It also produces RNG at their award winning, Honouliuli Wastewater Treatment Plant on Oahu. Hawaii Gas is a wholly owned indirect subsidiary of Macquarie Infrastructure Corporation (MIC). For more information, visit HawaiiGas.com.
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