$2B LNG Power Plant Proposed for Oahu Amid Affordability Crisis

JERA Americas, the US arm of JERA, a major Japanese power generation and liquefied natural gas (LNG) trading company, is proposing to build a $2 billion LNG power plant on Oahu. The plan aims to process the gas and generate power for Hawaiian residents.

The Longboard LNG Project would include a new power plant and an offshore import terminal at Kalaeloa (Barbers Point), capable of generating 500 megawatts, roughly one-third of Oahu's electricity. JERA says it is not trying to replace Hawaiian Electric as the retail electric utility but rather provide another option for electricity.

Erik Montague, vice president of development at JERA Americas, stated that by transitioning from oil to gas, which is a lower-cost form of energy, it will help drive affordability in Hawaii. However, environmental groups are raising concerns over the proposal, saying it contradicts Hawaii's renewable energy goals and questions a fossil fuel company's claim to being a bridge to a 100% renewable future.

JERA intends to submit its formal application in the first quarter of 2027, with regulatory approvals hoping to begin generating energy by 2030. The proposal has been met with mixed reactions from government officials and residents alike, with some seeing it as a solution to Hawaii's affordability crisis while others are concerned about the environmental impact.