Alaska Legislature Struggles with Tax Breaks for LNG Megaproject

The third special session to discuss tax breaks for the proposed Alaska LNG megaproject has begun without a bill from Governor Mike Dunleavy. The session aims to provide a multibillion-dollar property tax cut for the project, which could deliver natural gas to most of the state by 2029 and overseas exports of liquefied natural gas starting in 2031. However, lawmakers have expressed slim hopes that they can find common ground to pass a bill this year.

Last week, key lawmakers in both chambers said they had spent months considering measures that failed to pass both chambers and win the approval of the governor and New York-based Glenfarne, which owns 75% of the project. The Alaska LNG project is seen as critical for providing natural gas for heat and power due to shortfalls in local gas production from Cook Inlet.

On social media, Governor Dunleavy said that his administration would continue meeting with all parties to determine the best path forward to an agreement. He hopes to reintroduce a bill that would get support it needs to pass both bodies and conclude this special session quickly.