Extra-special AK LNG energy update for late July 2026
Welcome to this extra special edition of the FCAC energy newsletter - coming in hot with an update on the proposed AKLNG project.
A big win (for now) on AK LNG, and a third special session
On July 16, Governor Dunleavy’s proposed tax cut subsidy for the Alaska LNG project failed to pass. This vote was just the latest twist in the legislation’s bumpy ride through months of committee hearings and rushed floor votes. The governor immediately called a third special session starting July 27, but legislators are skeptical after the contentious end of the second session.
The bill’s failure was absolutely the right outcome, but the reasons for its failure are less straightforward. Ultimately, it wasn’t legislators demanding more transparency from Glenfarne about their contract with the Alaska Gasline Development Corporation (AGDC), or legitimate construction cost estimates that sank the bill. It was the steadfast refusal from the governor’s office and oil industry supporters in the legislature to tax oil companies — namely Hilcorp — equally.
The bi-partisan Senate majority voted in favor of the bill to close this tax loophole, which they had pushed to include. The bill narrowly failed in the House because of opposition to the Senate provision, but Governor Dunleavy had already signaled that he’d veto the bill if it did pass.
Closing this tax loophole is something we’ve consistently advocated for, but it would’ve been a tough way to see that happen. There is simply too much information missing about the AK LNG project, and no way for the legislature to shape a bill that would make sure Alaskans’ interests come first.
Since Governor Dunleavy introduced the original AK LNG property tax legislation in March, we’ve asked you to write and call your legislators to ask them not to reward project developers’ secrecy with public subsidies. Here’s a quick recap of a few of the reasons this legislation is a bad deal for Alaskans:
Gas price gaslighting: Developers have promised Alaskans affordable gas, but if only the in-state pipeline is built — the less expensive portion of the project, and the part Glenfarne actually has engineering analysis for — Alaskans could get locked into ever-escalating costs for gas that in 2033 will be roughly double current prices, and could soar to five times current rates by 2062.
Local impacts: AK LNG construction would cost municipalities millions to mitigate damage to road infrastructure, stretch emergency services, school, hospital, and housing capacity, all while developers pay a fraction of current Borough taxes. A past pipeline proposal by major oil companies planned $800 million to address community impacts; the most recent legislation would require just $50 million from Glenfarne.
Lack of transparency: Glenfarne and AGDC’s contract is a secret, but a leaked confidential draft agreement shows that Alaska could owe Glenfarne billions of dollars if they decide to walk away from the project.
The myth of a Fairbanks spur line: Developers have relied on the false assumption that about 90 percent of Fairbanks would be connected to natural gas within a few years of a pipeline being built. But Fairbanks doesn’t have the utility infrastructure to use gas; it would cost homeowners tens of thousands of dollars to convert their homes to use gas; and a spur line could cost $250 million — a cost that Glenfarne thinks Alaskans should pay for.
Unknown value of tax cuts because of speculative economics: The value of a property tax cut for the pipeline, Nikiski liquefaction facility, and North Slope gas processing plant is contingent on construction costs and assessment of infrastructure. But Glenfarne hasn’t provided accurate estimates, so legislators have no way of knowing how much they are being asked to give away. Developers maintained an overall cost estimate of $46.2 billion until very recently. After one legislator called Glenfarne’s figures ‘complete garbage,’ Glenfarne upped that number to $54.5 billion. Independent analysts have said $70 billion is more likely, and recent cost overrun analysis suggests a range of $85 to 104 billion.
For the third special session, legislators are planning to hold technical discussions, rather than reconvening in Juneau. It doesn’t seem likely that they’ll find another compromise since the Senate is set on including the corporate tax measure, and Governor Dunleavy and Hilcorp are staunchly opposed to it. Even if tax subsidies for AK LNG don’t materialize, Alaskans are still losing out each time the governor calls a special session — the legislature usually budgets $1 million for each 30-day session.
Alaskans deserve more clarity about the implications of tax relief for the AK LNG project before any new legislation gets considered. Glenfarne won’t even have detailed engineering analysis and cost estimates for the much more expensive gas processing and liquefaction facilities until next year. Tell your legislators not to give tax cuts to this project without understanding the consequences!
Take Action
Come see us at Salmonfest and get some swag!
If you are on the Kenai Peninsula this weekend, come see us at Salmonfest! We’ll have a No AK LNG booth set up with new artwork on stickers, T-shirts, hoodies, and some fun art projects on hand too. We'll have shirts, stickers, and button-making supplies, with designs from some fabulous AK artists. You can also purchase the new shirts and sweatshirts in a few different colors online. It’s time for Real Solutions, Not Pipe Dreams!
Get Swag
Artist spotlight
We're very excited to feature Fairbanks artist Emily Hikes' design in our new shirts and hoodies. Check out her artist statement below:
Visual arts have been a mainstay of movements for good reason. They are messaging, a release, a connector, and time capsules of a moment, while evoking thoughts, feelings, and discourse in both the creators and viewers. I encourage any and everyone to let artistic expression be your catharsis in times like these, especially when you are weary, and especially in an era of our humanity being crowded out by the rise of AI. Fingerpaint your grief as fridge art. Create the anti-lawn zine and pass it out. Cut fabric into the shapes of beings on this one sacred earth that give you the most joy and wear them proudly. Let art be the reminder of what we have to lose and gain.
Action Recap
On Saturday, a floating parade was organized to show that there are many Alaskans who believe Alaska's future is not based on harmful extraction.
Participants on various kinds of watercraft floated through town, accompanied by local musicians on a handmade raft, holding banners reading “ No AK LNG.” At several locations, they were met by land compatriots for banner drops reading “Alaska is not for sale” and “no Glenfarne Tax Breaks.”
With the legislature going into a third special session for an AK LNG pipeline that is not aligned with Alaskan's best interests, organizers wanted to come together - in joy and celebration for the lands that they love, as well as a sense of fierce protection of what is being threatened.
Read more on the action from the Newsminer here.
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