Alaska LNG Project Hit by Multibillion-Dollar Tax Cut Blow

The development of the $55 billion Alaska LNG megaproject is facing new challenges after the state Legislature refused to reconvene and consider a multibillion-dollar property tax cut for the project.

Glenfarne, the developer behind the project, expressed disappointment over the decision in a statement. 'We are disappointed the Legislature has stated they will not take final action on property tax legislation to facilitate the development of the Alaska LNG pipeline,' Glenfarne said.

The company stated that the lack of a tax cut will lead to schedule delays and increased costs for the project, which aims to deliver long-stranded natural gas from the North Slope to Alaskans and Asian entities. The project is seen as crucial in resolving a gas supply shortage in Cook Inlet, which could result in costly imports of liquefied natural gas.

Glenfarne owns 75% of the project, while Alaska Gasline Development Corp., a state-owned entity, holds the remaining 25%. The company will now evaluate alternative paths forward to deliver the project, including the LNG export terminal.