“From my perspective, that’s what’s killed this iteration of the bill.” - Gov. Mike Dunleavy, of a proposal within the gasline tax break bill to begin to apply the state’s corporate income tax to certain private oil and gas companies.
A bumper sticker on a car parked in Midtown Anchorage on June 29, 2026, expresses support for the Glenfarne-Alaska Gasline Development Corp. plan for natural gas pipeline tax concessions. (Photo by Yereth Rosen/Alaska Beacon)
By James Brooks
A few months from now, if developers of the proposed trans-Alaska natural gas pipeline move forward with the project, they will ask Alaskans for something between a few hundred million and a billion and a half dollars.
The request is optional, but if the state doesn’t chip in, Alaska’s 25% ownership of the pipeline will dwindle to a smaller fraction, and any profits will similarly shrink.
The Coral Princess cruise ship towers over small boats docked at Whittier's harbor on July 16, 2025. The Princess ship is at the old cruise terminal. (Photo by Yereth Rosen/Alaska Beacon)
By Yereth Rosen
The western Prince William Sound town of Whittier is small, with only about 250 residents packed into a narrow slice of land between the mountains and the sea. But it accommodates a huge number of travelers who move in and out by cruise ship, ferry, railroad, car, bus and truck.
In recent years, according to city officials, Whittier has gotten about 700,000 visitors annually: tourists, recreational users, seafood workers, cargo shippers and others. That number is expected to increase substantially in the coming years.
Gov. Mike Dunleavy speaks at a press conference with members of the Republican House and Senate minority caucuses on July 16, 2026. (Photo by Corinne Smith/Alaska Beacon)
By James Brooks and Corinne Smith
The Alaska House of Representatives on Thursday voted down a multibillion-dollar tax break for the proposed trans-Alaska natural gas pipeline project. Glenfarne LLC, the project’s lead developer, has said the tax break is necessary for it to obtain financing from banks and equity investors.
The Alaska Senate voted 11-8 to approve a compromise version of House Bill 381, which contains the tax break. But after that vote and as the House gaveled in, Dunleavy announced he would veto the bill if it were to pass.
Matt Kissinger and Frank Richards of the Alaska Gasline Development Corp. prepare to testify to the House Finance Committee on May 27, 2026, in Anchorage. (Photo by Yereth Rosen/Alaska Beacon)
COMMENTARY
By Sean McDermott, Elaine Schroeder and Doug Woodby
Last month, a confidential draft agreement between the Alaska Gasline Development Corporation and Glenfarne leaked. It shows why AGDC is so reluctant to make the details public: The Alaska LNG project could be a financial black hole for Alaska, at a time when the state is struggling to keep schools open and roads maintained.
The document suggests that if Glenfarne fails to develop the tenuous megaproject, Alaska could have to pay to regain control of the asset it’s developed with state funds — a fee based on a subjective assessment of the change in the project’s value under Glenfarne, which could be billions of dollars. That also means if the governor’s proposed tax subsidy boosts the project’s economics, the state’s clawback fee could soar if the company withdraws.
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