Sunday, July 05, 2020
Hawai'i Free Press

Current Articles | Archives

Thursday, September 04, 2014
Refinery Switch: HECO Dumps Par Petroleum for Chevron
By News Release @ 8:05 PM :: 4724 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.


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


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


808 Silent Majority

808 State Update AM940


ACA Signups Hawaii



Alliance Defending Freedom

Aloha Life Advocates

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

American Mothers of Hawaii



Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Audit The Rail

Ballotpedia Hawaii

Better Hawaii 

Blaisdell Memorial Project

Broken Trust 

Build More Hawaiian Homes Working Group

CAFR Hawaii

Castaway Conservative

Children's Alliance Hawaii

Children's Rights Institute

Christian Homeschoolers of Hawaii

Citizens for Recall

Cliff Slater's Second Opinion

Coffee Break

CSIS Pacific Forum

DAR Hawaii

DVids Hawaii

E Hana Kakou Kelii Akina

E Māua Ola i Moku o Keawe

Farmers For Choice Hawaii


Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Get Off Your Butts!

God, Freedom, America

Grassroot Institute

Hawaii Aganst Assisted Suicide

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crime Victims' Rights

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defending Marriage

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Firearm Community

Hawaii Fishermen's Alliance

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii Meth Project

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Right to Life -- Big Island

Hawaii Right to Life -- Oahu

Hawaii Shield Law Coalition

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HI Coalition Against Legalized Gambling



Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Homeless Crisis

Honolulu Navy League

Honolulu Traffic

Horns of Jericho Blog

House Minority Blog

House Republican Caucus YouTube


Hump Day Report

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes


Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii


National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Hawaiian

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii


OHA Lies

Opt Out Today

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons 

Pro-GMO Hawaii


Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SIFE Remington

SIFE W. Oahu 

Sink the Jones Act

Smart About Marijuana--Hawaii

St Marianne Cope

State Budget Solutions Hawaii

State Policy Network

Statehood for Guam

Tax Foundation of Hawaii

The Harriet Tubman Agenda

The Long War Journal

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Truth About Trade & Technology - Hawaii

UCC Truths

Union Members Know Your Rights

US Tax Foundation Hawaii Info

Valor in the Pacific

VAREP Honolulu

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii