Some question if the JERA natural gas project will deliver meaningful savings
By Savannah Harriman-Pote
May 28, 2026 at 10:37 AM HST
Japanese energy company JERA has taken the first steps in the regulatory process for its proposed liquefied natural gas project on Oʻahu. But some are questioning whether gas could deliver meaningful savings to residents.
JERA wants to build a floating gas terminal off the coast of Barber’s Point and a new gas-fired power plant in Campbell Industrial Park. The company claimed in a recent proposal that by burning natural gas instead of oil for power, it can lower fuel costs by 20% and save residents an average of $500 on their electricity bills every year.
Gov. Josh Green has endorsed JERA’s proposal, emphasizing the need to lessen the state’s dependence on oil and lower energy costs for residents. But Rick Rocheleau, the director of the Hawaiʻi Natural Energy Institute, said the savings promised by JERA are “a mirage.”
Rocheleau said that JERA is calculating its savings per electric meter, not per household, and that the company didn’t distinguish between big customers who use a lot of power, like the University of Hawaiʻi for instance, and typical residential customers.
That means that $500 average savings isn’t reflective of what most residents would actually save on their bills. In reality, it may be much lower — Rocheleau estimates fuel savings would be close to two cents per kilowatt hour, or a 5% reduction in electricity costs for the typical ratepayer.
JERA confirmed that their estimated savings are based on meters, not households, as incorrectly stated in their proposal.
"The actual impact per household will depend on how much power that household consumes and how the overall generation savings are distributed through the various tariffs and rates set by the PUC,” said Erik Montague with JERA Americas in a written statement.
Liquefied natural gas is a fossil fuel. Under state law, Hawaiʻi can’t burn any kind of fossil fuel for power after 2045. In order to maximize its investment, JERA has laid out a tight timeline to get its LNG infrastructure up and running, with a 2030 target date for commercial operations.
Rocheleau estimates that if the project is delayed until 2035, nearly all savings evaporate. If there are subsequent cost overruns, LNG could start costing customers — but not by much, said Rocheleau.
“The same math that is compressing these savings compresses the magnitude of that extra cost, and we don't see it being more than a penny or two per kilowatt hour,” Rocheleau said.
Since Rocheleau said that this project is unlikely to make a big dent in customers’ bills either way, he believes the state can take its time to assess the trade-offs of LNG.
Before the state locks in with JERA, Rocheleau suggests looking at what other companies offer.
“We have time to make this decision more wisely,” he said. “If as a community we decide LNG makes sense, there are other entities around who think they can bring LNG at equal or lower cost.”
Potential conflicts?
The governor and the Hawaiʻi State Energy Office have taken an active role in promoting JERA’s project. Public record requests filed separately by the environmental groups Life of the Land and Earthjustice returned email threads of press officers from the governor’s office and the energy office coordinating the project’s media campaign with iQ 360, a public relations firm representing JERA.
Life of the Land executive director Henry Curtis said he believes the energy office has stepped outside its usual role.
“We've never seen the state energy office handpick a specific technology and a specific company and throw their weight behind it,” he said.
Last week, JERA’s subsidiary Longboard LNG filed for approval from the Federal Energy Regulatory Commission to begin the regulatory process for its offshore LNG terminal.
JERA’s project will also need to be reviewed by the Hawaiʻi Public Utilities Commission, which approves all new grid-scale energy projects in Hawaiʻi.
The PUC has a competitive bidding framework. Generally, Hawaiian Electric solicits bids from different developers for new energy projects and then selects the one that best meets the utility's and the ratepayers' needs in terms of cost and reliability.
Life of the Land regularly participates in proceedings before the PUC. Curtis said he believes that the energy office’s apparent preference for JERA’s project conflicts with the competitive regulatory process.
“We believe strongly in competitive bidding, and therefore the hand selection of one company and one fuel to us seems to be a perversion of competitive bidding,” he said.
Chief Energy Officer Mark Glick pushed back against that characterization, stating that his office was “deeply interested in any or all takers who would like to invest in Hawaiʻi.”
JERA has stated that it would like to bypass the competitive bidding process for its LNG project. Glick said that he was confident that JERA would proceed with its project in a way that was “consistent with [Hawaiʻi’s] laws and regulations.”
He also noted that the competitive bidding framework allows for exemptions. Hawaiian Electric must request such an exemption, and it is unclear at this point whether the utility will partner with JERA on the LNG project.
Documents obtained through the public records requests by Life of the Land and Earthjustice included a draft communications plan for the public announcement of JERA’s project proposal in March. That document said that JERA was in talks with HECO and included two different framings for the announcement depending on whether an agreement had been finalized.
The language that JERA ultimately used in its proposal suggests that at least as of mid-March, an agreement had not been reached. Around that time, the Energy Office and the utility also clashed before the PUC over another of HECO’s planned projects.
HPR reached out to HECO for comment on its communications with JERA. HECO executive Jim Kelly confirmed that the utility “had conversations with JERA” but did not provide any further details.
Hawaiʻi Public Radio exists to serve all of Hawai’i, and it’s the people of Hawai’i who keep us independent and strong. Donate today. Mahalo for your support.
JERA wants to build a floating gas terminal off the coast of Barber’s Point and a new gas-fired power plant in Campbell Industrial Park. The company claimed in a recent proposal that by burning natural gas instead of oil for power, it can lower fuel costs by 20% and save residents an average of $500 on their electricity bills every year.
Gov. Josh Green has endorsed JERA’s proposal, emphasizing the need to lessen the state’s dependence on oil and lower energy costs for residents. But Rick Rocheleau, the director of the Hawaiʻi Natural Energy Institute, said the savings promised by JERA are “a mirage.”
Rocheleau said that JERA is calculating its savings per electric meter, not per household, and that the company didn’t distinguish between big customers who use a lot of power, like the University of Hawaiʻi for instance, and typical residential customers.
That means that $500 average savings isn’t reflective of what most residents would actually save on their bills. In reality, it may be much lower — Rocheleau estimates fuel savings would be close to two cents per kilowatt hour, or a 5% reduction in electricity costs for the typical ratepayer.
JERA confirmed that their estimated savings are based on meters, not households, as incorrectly stated in their proposal.
"The actual impact per household will depend on how much power that household consumes and how the overall generation savings are distributed through the various tariffs and rates set by the PUC,” said Erik Montague with JERA Americas in a written statement.
Liquefied natural gas is a fossil fuel. Under state law, Hawaiʻi can’t burn any kind of fossil fuel for power after 2045. In order to maximize its investment, JERA has laid out a tight timeline to get its LNG infrastructure up and running, with a 2030 target date for commercial operations.
Rocheleau estimates that if the project is delayed until 2035, nearly all savings evaporate. If there are subsequent cost overruns, LNG could start costing customers — but not by much, said Rocheleau.
“The same math that is compressing these savings compresses the magnitude of that extra cost, and we don't see it being more than a penny or two per kilowatt hour,” Rocheleau said.
Since Rocheleau said that this project is unlikely to make a big dent in customers’ bills either way, he believes the state can take its time to assess the trade-offs of LNG.
Before the state locks in with JERA, Rocheleau suggests looking at what other companies offer.
“We have time to make this decision more wisely,” he said. “If as a community we decide LNG makes sense, there are other entities around who think they can bring LNG at equal or lower cost.”
Potential conflicts?
The governor and the Hawaiʻi State Energy Office have taken an active role in promoting JERA’s project. Public record requests filed separately by the environmental groups Life of the Land and Earthjustice returned email threads of press officers from the governor’s office and the energy office coordinating the project’s media campaign with iQ 360, a public relations firm representing JERA.
Life of the Land executive director Henry Curtis said he believes the energy office has stepped outside its usual role.
“We've never seen the state energy office handpick a specific technology and a specific company and throw their weight behind it,” he said.
Last week, JERA’s subsidiary Longboard LNG filed for approval from the Federal Energy Regulatory Commission to begin the regulatory process for its offshore LNG terminal.
JERA’s project will also need to be reviewed by the Hawaiʻi Public Utilities Commission, which approves all new grid-scale energy projects in Hawaiʻi.
The PUC has a competitive bidding framework. Generally, Hawaiian Electric solicits bids from different developers for new energy projects and then selects the one that best meets the utility's and the ratepayers' needs in terms of cost and reliability.
Life of the Land regularly participates in proceedings before the PUC. Curtis said he believes that the energy office’s apparent preference for JERA’s project conflicts with the competitive regulatory process.
“We believe strongly in competitive bidding, and therefore the hand selection of one company and one fuel to us seems to be a perversion of competitive bidding,” he said.
Chief Energy Officer Mark Glick pushed back against that characterization, stating that his office was “deeply interested in any or all takers who would like to invest in Hawaiʻi.”
JERA has stated that it would like to bypass the competitive bidding process for its LNG project. Glick said that he was confident that JERA would proceed with its project in a way that was “consistent with [Hawaiʻi’s] laws and regulations.”
He also noted that the competitive bidding framework allows for exemptions. Hawaiian Electric must request such an exemption, and it is unclear at this point whether the utility will partner with JERA on the LNG project.
Documents obtained through the public records requests by Life of the Land and Earthjustice included a draft communications plan for the public announcement of JERA’s project proposal in March. That document said that JERA was in talks with HECO and included two different framings for the announcement depending on whether an agreement had been finalized.
The language that JERA ultimately used in its proposal suggests that at least as of mid-March, an agreement had not been reached. Around that time, the Energy Office and the utility also clashed before the PUC over another of HECO’s planned projects.
HPR reached out to HECO for comment on its communications with JERA. HECO executive Jim Kelly confirmed that the utility “had conversations with JERA” but did not provide any further details.
Hawaiʻi Public Radio exists to serve all of Hawai’i, and it’s the people of Hawai’i who keep us independent and strong. Donate today. Mahalo for your support.