Dunleavy Ends Special Session on Alaska LNG Bill Amid Legislative Opposition

Alaska's Governor Mike Dunleavy announced on Thursday that there is 'little reason' to continue the third special session on the Alaska LNG bill. The bill aims to give a multibillion-dollar property tax cut to the project, which has been met with resistance from legislative leaders.

Dunleavy stated in a social media post that since the leadership of the legislature chose not to attend the special session to advance the AKLNG gasline project, there is no need to continue the session. He emphasized that he will not watch public dollars being spent on special sessions when lawmakers decline to work on his bill.

The Alaska LNG megaproject, worth up to $55 billion, aims to deliver long-stranded natural gas from the North Slope for delivery to Alaskans and Asian entities. The project is seen as critical in resolving a gas supply shortage in Cook Inlet that could lead to costly imports of liquefied natural gas.

The decision raises questions about the future of the project, which has been plagued by delays and opposition from lawmakers. Dunleavy introduced a bill proposing to end property taxes for the project and creating a smaller gas-volume tax as a replacement, but it failed multiple times to pass in both the Senate and House of Representatives.

Major business groups, including the Alaska Oil and Gas Association and Hilcorp, expressed opposition to Dunleavy's proposed corporate income tax expansion. The House minority caucus criticized legislative leadership for not convening to consider Dunleavy's proposal for a new bill.