Alaska LNG Project Delayed Amid Legislative Failure

The Alaska LNG project's lead developer, Glenfarne, has warned that legislative failure will delay the gas line and drive up its cost. The company issued a statement after the Democrat-led leadership of the House and Senate made clear lawmakers would not reconvene to take final action on property tax legislation sought for the Alaska LNG pipeline.

Glenfarne remains committed to delivering the reliable, affordable energy and economic benefits Alaskans have sought from North Slope gas for decades. However, the company expressed disappointment in the Legislature's decision not to act, stating that this will cause schedule delay and cost increase on the gas line.

The property tax legislation would have replaced conventional taxes with a predictable tax based on the volume of gas transported through the line. Glenfarne has said that certainty is necessary to finance a project expected to cost tens of billions of dollars.

The Legislature's refusal to act does not end Alaska LNG, but it leaves Glenfarne searching for another way around a problem lawmakers had the opportunity to solve.