Stop the secrecy: SB 275 is an opportunity to shine a light on the true costs of AK LNG
The Alaska Gasline Development Corporation’s plans for an 800-mile-long gas pipeline from the North Slope to Cook Inlet are mired in secrecy and misdirection. After granting Glenfarne Group — a private company with no practical pipeline experience — a 75 percent share in the project, AGDC effectively shut the state legislature out of the process, even as the corporations petition for property tax breaks and other subsidies.
Finally running out of patience with Glenfarne and AGDC’s utter lack of cooperation and refusal to share the project’s financial details, Senator Cathy Giessel sponsored Senate Bill 275 to compel some much-needed transparency and financial accountability.
Email Senate.Resources@akleg.gov to tell the legislature that Alaskans deserve truth and transparency.
Currently the bill would:
Allows legislators access to critical information about costs and contracts. The actual cost of the proposed pipeline remains a mystery, but in a March 13th hearing, Senator Forrest Dunbar suggested it could be $80 billion, which is nearly double the $44 billion estimate AGDC previously claimed.
State resources belong to Alaskans. This bill is designed to make sure that if the pipeline gets built, Alaskans won’t get swindled out of royalties and taxes. The fact that legislators are concerned that would happen shows how little trust Alaskans should have that this project is being developed in our best interests.
This pipeline shouldn’t be built if it raises Alaskans’ energy rates. Senator Bill Wilechowski told reporters that he had credible information that the pipeline could cost Alaskans five times more than current gas rates.
This corporate secrecy undermines Alaska’s constitution. This bill is an essential start for the legislature to be able to execute their constitutional responsibility to make sure that development of state resources is only done for the maximum benefit of Alaskans, not corporate executives.
There are a couple of other things we think it’s crucial for legislators to address too:
Make the final cost assessment from Glenfarne’s Front End Engineering and Design process public. Alaskans deserve to know the truth of what this project will cost, and who will pay for it. A previous report that AGDC commissioned by energy analysts Wood MacKenzie did some creative calculations to try and make the project look viable. For example, they suggested that 90 percent of Fairbanks will be hooked up to natural gas within a few years, even though there is no plan to get gas to Fairbanks, and a lack of infrastructure to use it.
Ensure funds for dismantling, removal, and restoration (DR&R) of pipeline infrastructure are fully obligated as a condition of construction. Legislators should not invest any public money in this pipeline project without financial guarantees that Alaskans will not be left with the bill for dismantling its infrastructure.
