Alaska LNG Tax Bill Collapses Over Property Tax Dispute

A legislative effort to secure tax exemptions for the $50 billion Alaska LNG pipeline project collapsed after the Alaska House Bipartisan Majority Caucus announced the bill lacked the support needed to pass. The legislation, introduced by Governor Mike Dunleavy, failed due to intractable differences over a property tax relief provision and a disputed S-Corporation income tax on oil and gas companies.

Mike Dunleavy condemned the legislature's inaction as deeply disappointing, warning that the failure sends a negative signal to global investors and worsens a crisis of affordable, reliable natural gas within the state. The project, a joint venture between Glenfarne Group and the Alaska Gasline Development Corporation, intends to transport North Slope gas to south-central Alaska for domestic use and export to Asian partners, including Japan.

While the House Majority Coalition maintained support for the broader project, the Senate Bipartisan Majority Caucus indicated it does not plan to reconvene to act on the legislation. This collapse occurs as south-central Alaska faces a deepening gas supply crisis and emergency arbitration over gas deliveries.