(2013-01-17)
Fereidun Fesharaki, an oil and natural gas expert and fellow at the East-West Center, is a strong supporter of importing LNG. He said that the state wasn’t going to achieve its renewable energy goals by the dates outlined. By 2030, 40 percent of the state’s energy must be derived from renewable energy sources.
“The pace and direction which has been set is pretty OK,” he said of the state’s clean energy policy during a media briefing on Wednesday. “But the timing is unrealistic.”
In the meantime, he said it makes sense to switch to LNG, particularly given the current state of Hawaii's oil refineries. Tesoro, one of the state’s two oil refineries announced last week that it was shutting down.
And Fesharaki predicts that Chevron, Hawaii’s other refinery, will shut down within the next couple of years, making the state more vulnerable to major disruptions in the international oil market.
... Building the extensive infrastructure needed for LNG, including an import terminal, regasification plant and pipelines, will cost at least half a billion dollars, said Fesharaki.
... Currently, diesel prices are on par with what Hawaii is paying for low sulfur fuel oil, said Fesharaki. But in coming years, he said diesel prices are expected to be higher. And in the long run, despite the hefty investments needed for LNG infrastructure, he said that natural gas would be cheaper for Hawaii consumers.