HG&E receives approval for liquefied natrual gas expansion project

HOLYOKE — After three years of deliberation, the Massachusetts Energy Facilities Siting Board has approved, with conditions, Holyoke Gas and Electric’s Liquefied Natural Gas Infrastructure and Resiliency Project.

The project includes the installation of a fifth LNG storage tank and an additional vaporization system at HG&E’s West Holyoke facility.

The new tank is expected to be operational by late 2027 or early 2028, pending manufacturer delivery timelines.

Holyoke’s natural gas moratorium remains in effect for new service requests for which there is an economically viable alternative.

Customers interested in new or expanded natural gas services are encouraged to complete HG&E’s natural gas interest form at hged.com.

HG&E will review all requests for gas service and will approve those that it has the capacity to serve and for which no economically viable alternative exists, or where service is determined to be in the best interest of the city, including supporting economic development initiatives.

“Energy reliability directly impacts our ability to attract and retain businesses, support industrial growth and create jobs,” Mayor Joshua Garcia said in a statement. “When companies are considering investment in Holyoke, dependable energy infrastructure is key.”

According to HG&E, the facility supplies about 40% of the city’s natural gas during peak demand periods, typically on the coldest winter days. Officials said the expansion will improve reliability, reduce dependence on a single pipeline source and help meet increasing energy demands.

Holyoke Planning and Economic Development Director Eric Nakajima noted that the Siting Board’s approval will support the city’s economic competitiveness.

“Energy supply bottlenecks are a barrier to new investment and growth in Holyoke,” Nakajima said. “This decision will support jobs and businesses in the city in the coming decade.”

With increasing peak loads, due to severe weather and other impacts, HG&E sought to increase capacity at the LNG facility to ensure natural gas service is available when customers need it most.

The current facility in West Holyoke has been operating safely and reliably for over 50 years, according to the city. HG&E’s website notes that the West Holyoke LNG facility was designed for five storage tanks, but only four were installed when the site was developed.

No new pipelines or infrastructure will be required outside of the boundaries of the existing site. HG&E stated, “There will be very limited construction and operational impacts related to this project.”

Garcia also applauded the Siting Board’s approval and expressed his appreciation for the cooperation of Gov. Maura Healey’s administration.

“We’re grateful to Governor Healey’s office for supporting this necessary and forward-looking reliability improvement and storage expansion of HG&E’s natural gas resource,” Garcia said. “Approval of this additional storage tank is in the best interests of Holyoke’s residential and commercial customers.”

HGE will continue to update the website and outreach materials as additional information becomes available.