Alaska Governor Proposes New LNG Tax

0:00Local headlines in two minutes or less, you're tuned into Anchorage News today. Alaska Governor Mike Dunleavy introduced a bill to scrap property taxes on the massive Alaska liquefied natural gas project. Instead, it sets up a new tax based on the volume of gas flowing through the pipeline, at $0.6 per thousand cubic feet, rising 1% each. Year. This change aims to ease the financial load and help get the long delayed project off the ground. The governor says removing this tax barrier will unlock big benefits, like thousands of jobs, cheaper natural gas for homes and businesses, and exports to Asia. He points to projections of $26 billion in state and local taxes and royalties over 30 years, even with the new setup. The project would pipe gas 800 miles from the North Slope to a terminal in the Kiske with exports starting around 2031. Lawmakers are calling it a huge tax cut, potentially costing the state over $1 billion a year in loss revenue.

1:02Burrow mayors hosting the infrastructure worry about funding local services and are negotiating alternatives with the governor's team. Analysts question the rosy revenue forecast, noting production taxes might fall short compared to oil projects. This Alaska LNG effort has stalled for decades due to high costs, now estimated well above $44 billion under lead developer Glenn Farn. They hold preliminary deals with buyers and producers, but await a final investment decision, delayed from last December. Discussions continue as the legislature ways support measures and demands more financial details from developers. With cook inlet gas applies dwindling, swift action could finally deliver reliable energy and economic gains for Alaskans.