It’s been two years since Hawaii’s electric and natural gas utilities made their first, tentative moves toward ending their dependence on crude oil (for power generation and the production of synthetic natural gas) by shipping in liquefied natural gas (LNG) from western Canada and the U.S. mainland. While Hawaii Gas has secured state regulatory approval to ramp up the number of LNG-filled ISO containers it receives, the gas utility and Hawaiian Electric have so far failed to agree on a comprehensive LNG plan. Also, some state officials remain concerned that simply replacing oil with LNG will undermine Hawaii’s plan to get all its electricity from renewable sources by 2045. Today, we provide an update of the Aloha State’s fits-and-starts transition to LNG.
The Hawaiian Islands are known for their relaxed, slowed-down pace—and, you might be surprised to hear, worse traffic (in Honolulu) than in Houston. Maybe the slow pace of living (and driving) helps to explain why it’s taking so long to develop, get approval for and implement what could arguably be seen as a good idea—namely, phasing out oil-fired power generation and the production of naphtha-based synthetic natural gas (SNG) and shifting to LNG. As we said in our Blue Hawaii and Hawaii Two-Step series in 2014, Hawaii’s heavy dependence on imported oil contributes to the fact that it is an unusually expensive place to live—its electricity and gas rates are the highest in the country, and its gasoline and diesel are costlier too.
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The state’s primary electric utility (Hawaiian Electric) and its gas utility (Hawaii Gas) are both convinced that it would be best for both economic and environmental reasons if they phased out their dependence on oil (and, for the gas utility, oil-based naphtha), and instead they turned to LNG. However, instead of cooperating with Hawaii Gas on the development of a comprehensive plan for receiving enough LNG to meet all the islands’ needs, Hawaiian Electric put together its own plan (aimed at securing LNG for power generation only). Hawaii Gas, meanwhile, proposed a two-step plan. The first step would involve shipping in enough LNG on International Standardization Organization—or ISO—containers to displace up to 30% of the SNG the utility now produces; the second step (which Hawaiian Electric hasn’t signed on to) would involve mooring a floating storage and regasification unit (FSRO; see photo below and Take Me to the River) in the waters near Honolulu that would receive bulk deliveries of LNG sufficient to supply Hawaii Gas’s customers, Hawaiian Electric’s power plants, and anyone else interested in LNG (Hawaiian bus and truck fleets, for example).
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About the song
“It’s Not Easy Being Green” (also known as “Bein’ Green”) is the signature song of Sesame Street and Muppets superstar Kermit the Frog. The song, which muses on the challenges of, well, being green, was covered by Frank Sinatra and Ray Charles (it’s true--see the links below!).
