JERA, a Japanese energy company, recently filed a letter of intent with Hawaii state utility regulators, moving closer to building a $2 billion Liquefied Natural Gas (LNG) power plant on the island of Oahu.
The company says the proposed Longboard LNG Project would include a new power plant and an offshore import terminal at Kalaeloa (Barbers Point). The new plant would be capable of generating 500 megawatts, roughly one-third of Oahu’s electricity.
JERA says it is proposing a new wholesale electric generation company that would be regulated directly by the Public Utilities Commission, giving Oahu another option for electricity. The company says it is not proposing to replace Hawaiian Electric (HECO) as the retail electric utility.
The company invited the public to open house events to learn more about their proposed LNG project they are hoping could lower Hawaii’s electric bills.
The first open house was held Aug. 3 at the University of Hawaii West Oahu. Dozens of community members showed up to view 12 interactive information stations and get a better understanding of what is being planned.
“The first part of that would be what’s called a floating storage and re-gas unit. So, a vessel that would float offshore and receive the gas a couple miles offshore. And then there’s some fixed gas infrastructure, a pipeline, a subsea pipeline that would bring that gas onshore and tie into the existing natural gas network that’s here today,” said VERA vice president Erik Montague.
JERA said the shift away from oil and coal toward LNG as a complement to renewable energy is well underway.
Not everyone left the open house reassured, however. The president of the United Steelworkers (USW) Local 12-591, who is representing the refinery and fuel distribution workers at Par Hawaii Refining and Island Energy, said the proposed LNG facility, which is scheduled to begin operating as soon as 2030, throws a massive wrench into their 15-year renewable energy plan.
“As a company, we went in that direction, and we agreed to the renewable fuels by 2045. And, just by hearing this project coming along,” said Jarrett Wa’a. “Pretty much leaving more concerned than I came, being that some of the questions weren’t answered.”
Hawaii State Rep. Scot Matayoshi, chair of the House Consumer Protection and Commerce Committee, said he hopes the project could lower energy costs, but that lawmakers need to see more before drawing conclusions.
“Right now, it’s just kind of pie in the sky,” Matayoshi said. “They’re telling us all of the good parts and we need to make sure that all the bad parts get into the sunlight too.”
JERA’s vice president Erik Montague said adding LNG as one of Hawaii’s energy sources should lower generation costs while providing reliable power.
“Ultimately, you know, gas has proven to be a lower-cost fuel than oil. If you look at the historical prices, you know, there would have been a lot of savings had the state done this ten years ago,” Montague said.
The final open house even is scheduled for the evening of Aug. 5th.
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