Alaska LNG pipeline tax bill stalls in state legislature

Alaska LNG project natural gas pipeline Mike Dunleavy Glenfarne energy infrastructure

Alaska Governor Mike Dunleavy expressed deep disappointment after the state legislature declined to reconvene to vote on a tax change bill intended to advance the $50 billion Alaska LNG project. The proposed legislation would replace the state’s petroleum property tax with a tax on gas shipped through the pipeline, a move lead developer Glenfarne claims is necessary to make the project financially viable.

Legislative leaders, including Speaker of the House Bryce Edgmon and Senate President Gary Stevens, indicated the bill lacks sufficient support to move forward. The project, which is planned in two phases, aims to deliver gas from the North Slope to Southcentral Alaska for domestic use before expanding to international exports. The first phase is not expected to be completed before 2029.

The Alaska LNG project has significant international interest, with Japanese companies JERA and Tokyo Gas having signed preliminary deals to purchase a combined 2 million metric tons of LNG annually. Glenfarne has expressed intentions to reach a final investment decision on the first phase by the end of the year, though the project has missed several previous deadlines.

Entities

Alaska · Glenfarne · JERA · Mike Dunleavy · Tokyo Gas

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

[○ 1 SOURCE] Lead developer Glenfarne stated that a tax break is necessary to finance the pipeline project. www.chilkatvalleynews.com
[● 3 SOURCES] Governor Mike Dunleavy expressed disappointment that a bill to advance the Alaska LNG pipeline stalled in the state legislature. www.oilandgas360.com · boereport.com · www.chilkatvalleynews.com
[○ 1 SOURCE] Glenfarne aims to reach a final investment decision on the first phase of the project by the end of this year. www.chilkatvalleynews.com
[● 2 SOURCES] Japan’s JERA and Tokyo Gas have signed preliminary deals to purchase a combined 2 million metric tons of LNG annually from the project. www.oilandgas360.com · boereport.com
[○ 1 SOURCE] The project is planned in two phases, with the first phase expected to be completed no sooner than 2029. www.chilkatvalleynews.com
[○ 1 SOURCE] The total Alaska LNG project cost is estimated at approximately $54.5 billion. www.chilkatvalleynews.com
[○ 1 SOURCE] Legislative leaders Bryce Edgmon and Gary Stevens stated the bill lacks sufficient support to advance in the House or Senate. www.chilkatvalleynews.com
[● 2 SOURCES] The failure to pass the tax change bill sends a negative signal to investors and potential partners. www.oilandgas360.com · boereport.com

Sources

Stalled Alaska LNG pipeline bill sends ‘negative signal,’ governor says - Oil & Gas 360 [www.oilandgas360.com]

2 days ago

Stalled Alaska LNG pipeline bill sends ‘negative signal,’ governor says | BOE Report [boereport.com]

3 days ago

Amid widespread opposition, Alaska governor’s gasline compromise bill appears dead on arrival - Chilkat Valley News [www.chilkatvalleynews.com]

2 days ago