LNG Possible Cost-Saving Alternative for Hawaii Gas, Says Report

By Richard Nemec, NGI's Daily Gas Price Index.

Hawaii leaders have set a goal to use 100% renewables by 2045, but liquefied natural gas (LNG) may be a viable and cost-saving supplement to the use of synthetic natural gas (SNG) by Hawaii Gas as a primary fuel in the interim, according to the results of an 18-month bidding process by the state's only regulated gas utility.

Natural gas may be a lower-cost substitute for the company's SNG as well as a cheaper and cleaner alternative to the oil-based fuels used by electricity producers and ground/marine transportation operators, said a Hawaii Gas spokesperson said Tuesday when the report was released. "The Facts About LNG for Hawaii” follows five years of "discovery work" by the Macquarie Infrastructure Co. utility.

The only way to bring large quantities of LNG to the islands is for a third party to own and operate a floating storage and regasification unit (FSRU), Hawaii Gas said.