Anchorage, AK — The Alaska Gasline Caucus, led by co-chairs Rep. Mia Costello, R-Anchorage, and Sen. George Rauscher, R-Sutton, convened a public listening session today to address the critical status of the Alaska LNG project and the state’s worsening energy security.
The meeting featured testimony from Gov. Mike Dunleavy, state officials, utility leaders, and industry experts, all emphasizing that Alaska is at a turning point regarding its natural gas supply.
The governor opened the session with a call for immediate legislative action, noting that Cook Inlet gas supplies are depleting rapidly.
“The sirens, the bells, the whistles, they’ve been going off for some time,” Dunleavy said.
He urged the passage of property tax legislation in the current special session to unlock the multi-billion-dollar Alaska LNG project. The governor estimated that if work begins immediately, gas could be flowing to Alaskans and overseas markets in roughly three years.
The urgency of the situation was underscored by John Sims, President of ENSTAR Natural Gas Company, who warned that the utility is facing a 3 BCF shortage this winter, which is equivalent to 18 days where no customers can be served. Sims clarified that the situation is not “fear-mongering” but a reality of a mature basin that is no longer economically viable without heavy subsidies.
Tony Izzo, CEO of Matanuska Electric Association, added that uncertainty is the primary enemy of energy security, noting that utility rates are already projected to rise significantly due to the scarcity of local gas.
The economic benefits of the Alaska LNG project were also a central theme. At peak construction, the project is expected to require 6,600 workers, creating thousands of high-wage career opportunities for Alaskans.
Kari Nore of the Alaska Chamber reported that 80% of Alaskans support the construction of the pipeline for both in-state use and exports.
The project includes a gas treatment plant on the North Slope, an 807-mile, 42-inch pipeline, and a liquefaction facility in Nikiski.
Adam Prestidge of Glenfarne informed the caucus that the necessary property tax legislation is currently “on the one-yard line.” He emphasized that passing the bill is essential to convince international lenders and investors that Alaska offers a stable, predictable environment for the billions of dollars in private investment required.
“Strong economies create strong communities,” said Rebecca Logan, CEO of the Alaska Support Industry Alliance. “That’s what supports schools, infrastructure, public safety, health care, and opportunities that keep families in Alaska.”
Gasline caucus co-chair Costello said the Alaska LNG project is a cornerstone of Alaska’s future and it’s critically important to keep the project on the forefront.
“By unlocking our vast natural gas reserves, we will deliver reliable, affordable energy to Alaskan homes and businesses for generations to come, while creating thousands of high-paying jobs and fueling long-term economic growth across our entire state,” she said.
Co-chair Rauscher said: “The Alaska LNG project is vital to securing our state’s energy independence and economic future. By harnessing our own vast natural gas resources, we can drive down high energy costs for Alaskan families and local businesses, create stable, long-term jobs, and lay the foundation for sustainable economic growth across Alaska.”
The caucus remains committed to moving Alaska away from energy scarcity and toward long-term stability through the development of North Slope gas resources.
Media Contact: Amanda Bohman, 907-378-6809