Alaska LNG project advances as tax bill moves to House and Senate

A bipartisan conference committee in Alaska approved a substitute tax bill to support the Alaska LNG megaproject, applying the state’s corporate income tax to private oil and gas producers while exempting the project and replacing property taxes with a volume‑based tax. The measure, passed 4‑2, is slated for consideration by the full House and Senate during a second special session. The $55 billion project would deliver North Slope gas via an 800‑mile pipeline to Nikiski, with local use expected by 2029 and overseas LNG exports by 2031. Governor Mike Dunleavy and developers back the legislation, while major business groups warn the corporate tax could deter investment.

Meanwhile, a small group of Alaskans rallied at the state Capitol to oppose the pipeline. Protesters, led by 350Juneau co‑chair Doug Woodby, warned of climate impacts—“Methane is 80 times more powerful as a greenhouse gas than CO₂”—and financial risks, citing a confidential memo that the state could be on the hook for billions if the project overruns costs. They argue the pipeline is not a bridge fuel and could strain Alaska’s economy.

The debate highlights the tension between pursuing large‑scale energy development for state revenue and jobs, and concerns over environmental consequences and fiscal exposure.