S&P 500—Dow—NASDAQ—Russell 2000—FTSE 100—DAX—CAC 40—Nikkei—Hang Seng—ASX 200—ALEX—ALK—BOH—CPF—CYAN—FHB—HE—MATX—MLP—NVDA—AAPL—GOOGL—GOOG—MSFT—AMZN—META—AVGO—TSLA—BRK.B—WMT—LLY—JPM—V—XOM—JNJ—MA—MU—COST—BAC—ORCL—ABBV—HD—PG—CVX—NFLX—KO—AMD—GE—CAT—PEP—MRK—ADBE—DIS—UNH—CSCO—INTC—CRM—PM—MCD—ACN—TMO—NEE—BMY—DHR—HON—RTX—UPS—TXN—LIN—QCOM—AMGN—SPGI—INTU—COP—LOW—AMAT—BKNG—AXP—DE—LMT—MDT—CB—ADP—GILD—MDLZ—SYK—BLK—C—ADI—REGN—SBUX—NOW—CI—VRTX—ZTS—MMC—PLD—SO—DUK—CMCSA—APD—BSX—BDX—EOG—ICE—ISRG—SLB—LRCX—PGR—USB—SCHW—ELV—ITW—KLAC—WM—EQIX—ETN—TGT—MO—HCA—APTV—BTC—ETH—XRP—USDT—SOL—BNB—USDC—DOGE—ADA—STETH—S&P 500—Dow—NASDAQ—Russell 2000—FTSE 100—DAX—CAC 40—Nikkei—Hang Seng—ASX 200—ALEX—ALK—BOH—CPF—CYAN—FHB—HE—MATX—MLP—NVDA—AAPL—GOOGL—GOOG—MSFT—AMZN—META—AVGO—TSLA—BRK.B—WMT—LLY—JPM—V—XOM—JNJ—MA—MU—COST—BAC—ORCL—ABBV—HD—PG—CVX—NFLX—KO—AMD—GE—CAT—PEP—MRK—ADBE—DIS—UNH—CSCO—INTC—CRM—PM—MCD—ACN—TMO—NEE—BMY—DHR—HON—RTX—UPS—TXN—LIN—QCOM—AMGN—SPGI—INTU—COP—LOW—AMAT—BKNG—AXP—DE—LMT—MDT—CB—ADP—GILD—MDLZ—SYK—BLK—C—ADI—REGN—SBUX—NOW—CI—VRTX—ZTS—MMC—PLD—SO—DUK—CMCSA—APD—BSX—BDX—EOG—ICE—ISRG—SLB—LRCX—PGR—USB—SCHW—ELV—ITW—KLAC—WM—EQIX—ETN—TGT—MO—HCA—APTV—BTC—ETH—XRP—USDT—SOL—BNB—USDC—DOGE—ADA—STETH—
Policy & Regulation

Potential LNG Ban Could Spike Energy Costs, Force Infrastructure Rethink for Hawaii Businesses

·4 min read·👀 Watch

Executive Summary

Hawaii's legislature is considering a ban on liquefied natural gas (LNG), which could significantly increase energy expenses if enacted. Businesses reliant on current energy infrastructure must monitor legislative developments to prepare for potential cost hikes and supply chain adjustments.

  • Small Business Operators & Tourism Operators: Face potential 10-25% increase in operating costs due to higher energy prices.
  • Real Estate Owners & Developers: May need to factor in new energy compliance costs for existing and new constructions.
  • Investors: Should assess the risk to portfolio companies heavily reliant on stable energy prices.
  • Agriculture & Food Producers: Increased energy costs will impact irrigation, processing, and transportation expenses.
  • Action: Monitor House Bill progress and research alternative energy solutions.

Watch & Prepare

High Priority

Failure to monitor the progress of House Bill related to LNG could lead to unexpected increases in operating expenses or the need for rapid shifts in energy sourcing if the bill passes.

Monitor the progress of House Bill 119. Track legislative committee hearings and votes. If the bill advances to final readings, research alternative energy providers and technologies suitable for your specific business needs. Begin preliminary assessments of your current energy infrastructure's adaptability to potential shifts away from natural gas.

Who's Affected
Small Business OperatorsReal Estate OwnersInvestorsTourism OperatorsAgriculture & Food ProducersHealthcare Providers
Ripple Effects
  • →Potential LNG ban → Increased energy costs for businesses → Higher prices for goods/services → Reduced consumer spending
  • →Higher operating expenses → Squeezed business margins → Suppressed wage growth or potential layoffs
  • →Shift in energy sources → Demand for new infrastructure → Investment in alternative energy technologies and supply chains
  • →Increased energy costs → Exacerbated cost of living → Impact on remote worker viability and housing affordability
Business professionals discussing documents in a modern meeting room.
Photo by Vlada Karpovich

Potential LNG Ban Could Spike Energy Costs, Force Infrastructure Rethink for Hawaii Businesses

Hawaii's energy landscape faces a potential seismic shift with legislative consideration of a ban on liquefied natural gas (LNG). While proponents argue for a cleaner energy future, the immediate business implication is a likely surge in operating costs and the need for strategic planning around energy infrastructure. This development is particularly critical for an island economy reliant on imported fuels.

The Change

House Bill 119, seeking to ban the use and import of LNG in Hawaii, has garnered significant support, with over 113 testimonies in favor reported in mid-February 2026. While the bill's passage is not guaranteed and faces opposition, its progression through the legislature signals a serious intent to shift away from natural gas as a transitional fuel. If enacted, this ban would necessitate a hastened transition to other energy sources, potentially including renewables or other fossil fuels, each with its own cost and infrastructure implications. The exact timeline for legislative action remains fluid, but business owners should anticipate potential policy changes within the next legislative session.

Who's Affected

Small Business Operators (small-operator) and Tourism Operators (tourism-operator): Businesses across sectors, from restaurants and retail to hotels and tour operations, are highly sensitive to fluctuations in energy costs. A ban on LNG could lead to a rapid increase in electricity prices if cleaner, potentially more expensive, alternatives are the only options. Projections suggest a 10-25% increase in energy expenditures for businesses relying on grid power if LNG is removed from the energy mix without immediate, cost-effective replacements.

Real Estate Owners (real-estate) and Developers: The implications for property owners and developers are multifaceted. Existing commercial and industrial properties may need costly retrofitting to accommodate new energy systems. For new developments, the cost of compliance with evolving energy regulations could add 5-15% to construction budgets, potentially impacting rental rates and property valuations.

Investors (investor): Investors in Hawaii-based businesses, particularly those in manufacturing, heavy industry, or sectors with significant energy demands, need to re-evaluate risk profiles. Companies with long-term energy contracts or infrastructure tied to LNG could face stranded assets or require substantial capital investment for transitions, impacting profitability and potential returns.

Agriculture & Food Producers (agriculture): Farming and food production operations rely heavily on energy for irrigation, refrigeration, processing, and transportation. Higher energy costs directly translate to increased operational expenses, potentially leading to higher food prices for consumers and reduced profitability for producers. The Jones Act, already a factor in logistics, could be indirectly impacted if energy-related shipping costs rise.

Healthcare Providers (healthcare): While less directly reliant on large-scale industrial energy for patient care than other sectors, healthcare facilities still face increased operational costs through electricity and backup power generation. Telehealth infrastructure also depends on reliable and affordable internet, which is indirectly linked to energy costs.

Second-Order Effects

A ban on LNG, without a well-established and cost-competitive renewable energy infrastructure in place, could trigger a cascade of economic consequences. Higher energy costs for businesses will inevitably lead to increased prices for goods and services, contributing to broader inflation. This will strain consumer budgets, potentially decreasing discretionary spending, which directly impacts retail, tourism, and restaurant sectors. Furthermore, increased operating expenses for businesses could suppress wage growth or even lead to layoffs if margins are significantly squeezed. This, in turn, affects the cost of living for residents, impacting the viability for remote workers and potentially exacerbating housing affordability issues as businesses pass on costs. The push for alternative energy sources will also necessitate significant investment in new infrastructure, potentially creating short-term construction booms but long-term reliance on new supply chains and technologies that may be subject to volatility.

What to Do

Given the

More from us

Related Articles

Aerial shot of firefighting base with planes, trucks, and personnel in a rural area of Brazil.
Policy & Regulation

PUC Greenlights Hawaiian Electric's Wildfire Mitigation Plan, Paving the Way for Enhanced Grid Resilience

·5 min read
Close-up of a hand signing a legal document with a fountain pen, symbolizing signature and agreement.
Policy & Regulation

Hawaii's New Laws: Key Changes and Business Implications

·3 min read
A minimalist office setup featuring a planner, clipboard, card, and pen, perfect for planning and organization.
Policy & Regulation

Maui's $1.56B Budget: A New Direction for Business and Investment

·3 min read