Alaska's $46B LNG Project: Tax Breaks & Jobs

0:00It's March 27th. This is Engage News Today, AI-powered stories from your city. I'm Cory with the story. Alaska Governor Mike Dunleavy has introduced a bill to wipe out property in sales taxes on the $46 billion Alaska liquefied natural gas project. The goal is the kickstart construction of an 800 mile pipeline from the North Slope to deliver gas for local use in exports. Instead of local taxes, during the build-up phase, the plan swaps in a volume-based tax of $0.6 per thousand cubic feet of gas once production. It's 1 billion cubic feet per day, or after 10 years of output. State economists project over $22.5 billion in new revenue for Alaska over the next 36 years from production taxes and royalties. Lawmakers and local leaders are split, with some calling it a huge giveaway to developers that could cost municipalities $13 billion in. Lost property taxes through 2062.

1:01Critics-worthy communities along the route will shoulder extra costs like public safety without early revenue. This long-dream project now involves New York-based Glenfarn, which owns 75% and a state agency holding the rest. They're splitting it into phases, starting with a domestic pipeline by 2029, followed by an export terminal, promising 7,000, construction jobs and lower energy bills. Supporters say global events make now the perfect time and utilities could soon sign gas deals. But the legislature will scrutinize the tax breaks as hearings continue this week.