Big Isle company fills void as gas strike continues

As the statewide Hawaii Gas strike nears two weeks, some gas service is being being covered by other companies.

That’s at least the case on Hawaii island, where business has shot up for Alii Gas since Hawaii Gas employees went on a statewide strike on June 1.

“This was our slow season … and we were packed with fuel, which is good, because we’re definitely scrambling,” said Scott Unger, owner of Alii Gas, later adding, “We probably have a bigger presence in Kona. That’s all changed now. We’re getting calls, we’re doing a ton of stuff in Hilo now.”

The company ships its petroleum products in from the Par Hawaii refinery on Oahu, so the strike hasn’t affected Unger’s supply. Based in the Kailua-Kona area, where recent gas disruptions forced the temporary closure of several restaurants, Alii Gas has refilled dozens of tanks for businesses contracted with Hawaii Gas.

That includes the Manago Hotel in Captain Cook, which had to temporarily close its restaurant because of its dwindling propane supply, which it wanted to preserve so hotel guests could continue to have hot water.

“We just called Hawaii Gas and spoke with a supervisor, and they just sent us an email basically saying that they’re waiving our contract in order to get another company to fill the gas (tank),” said Britney Manago, manager of the hotel.

Ultimate Burger, one of the four restaurants in the Kona Commons shopping center where cooking equipment stopped working in the middle of the day because a propane tank the businesses shared became empty, said in a Facebook post over the weekend that Alii Gas had also filled their tank.

Unger said he’s received about 30 waivers in the past two weeks from businesses contracted with Hawaii Gas that have permitted Alii Gas to fill their tanks. The practice has little precedent, said Unger, who has worked with Hawaii Gas competitors on Hawaii island for about two decades.

“This is the first time they’ve ever, ever granted waivers for us to fill their tanks. They would rather people run out,” he said. “But I think this time around there was so much pressure, so much public pressure, that they have been sending out waivers left and right for us to fill their tanks.”

There have been some technical and safety concerns about using different companies to fill the same propane tanks, but Unger said it’s mostly a misunderstanding and that there really are no issues filling Hawaii Gas tanks.

While there also have been reports of gas service disruptions on Maui, supply for commercial gas customers elsewhere doesn’t appear to be a problem yet. Prior to the strike there were concerns about propane shortages at hotels and other visitor-focused facilities, especially those in Waikiki, although those concerns have yet to be realized.

Many hotels are utility gas users that get gas delivered directly from Hawaii Gas through pipes. The commercial entities that have been affected by gas disruptions so far have on-site gas tanks that haven’t received scheduled refills from Hawaii Gas delivery trucks.

Many of the 200 or so Hawaii Gas employees on strike are truck drivers.

There also have been reports of propane shortages for residential users.

Hawaii Gas is officially telling customers to submit online customer requests if their tanks fall below 10% full.

Unionized employees represented by Hawaii Teamsters and Allied Workers, Local 996, and Hawaii Gas have resumed contract negotiations since the beginning of the strike, but the two sides don’t appear any closer to an agreement on wage increases and medical premiums, which have been at the center of the disagreements.

Meanwhile, there has been public mudslinging between the two sides, with Hawaii Gas accusing protesting employees of blocking trucks from delivering gas to customers and Hawaii Teamsters accusing the utility’s nonunion workers of taunting union employees.

Most recently, Hawaii Gas on Monday accused union employees of blocking a truck from exiting and entering a facility in Kaneohe and threatening the driver. The utility also accused the union of asking other unions to stop barges with gas shipments from docking.

The utility previously accused Hawaii Teamsters of blocking a truck from leaving a Hilo facility, but a union representative suggested it was a publicity stunt.

The union said it is ready to meet with Hawaii Gas again starting Monday, although the utility said it wants to meet again sooner.