Alaska Natural Gas Pipeline

Created May 27, 2026, Updated July 1, 2026 (A work in progress.)

I hope the following information is helpful to you and that you’ll share your own thoughts, resources, and recommendations with me, helping me make the best decisions for House District 9 and our state. For a quick summary of the project, jump to the project background links.

Key update

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Click to open an arcgis map and explore the route.

Contents – Use the links to jump to a section:

Alaska LNG – Gas Pipeline Dashboard

Overall project status

🟡 Pre-FID development / early execution planning

Project is being advanced in two financially separate phases: Phase 1 pipeline for in-state gas; Phase 2 LNG export facilities. No full construction go-ahead has been publicly confirmed. The developer (Glenfarne) with AGDC and the Governor are insisting that for the project to advance, the State and municipalities and boroughs along the right of way, from the North Slope to the Kenai Peninsula, give up any property taxes during Phase 1 and when minimum flows are reached to reduce taxes to be paid about 90% in the future. Property taxes on a $50 billion system at the existing state rate of 20 mills (2%) would be roughly $1billion in state and local income, before the requested reduction.

Overall Legislation Status

🟡 Special Session consideration of property tax relief

The House passed HB 381 35-4, sending it to the Senate that amended it and passed it 12-8. On June 19th the second session ended without house action. On June 20 the House did not concur with Senate changes, and subsequently the Senate did not withdraw their changes triggering a joint conference committee. Both chambers intend to be back in Juneau July 16 (changed from July 1) to vote on the conference committee results.

Current ownership / lead developer

✅ Glenfarne 75% / Alaska Gasline Development Corporation AGDC (State of Alaska) 25% ownership of an AGDC spin-off called “8 Star Alaska LLC” that now holds all of the Alaska gas pipeline assets.

Glenfarne is the majority owner and lead developer; Alaska remains a minority public owner through AGDC and seat on the 8 Star Alaska board of directors. The project will be build with three subsidiary companies with equity investors that will have 75-100% of the ownership of the companies holding and operating the pipeline, conditioning plant, and LNG export plant. Alaska has the option of investing 5-25% in one or more of the three companies. There is no minimum carried interest in the project companies back to 8 Star Alaska, it is a shell company.

Capital cost estimate

🟡 Phase 1: $13.2B–$16.9B; full project: $44.5B–$54.5B

These are recently released developer estimates. Cost certainty, overruns, tariff impact, and ratepayer protections remain key questions. Phase 1 would be owned by a pipline owner subsidiary of 8 Star Alaska. Alaska has the right but not requirement to invest in 5-25% of the equity needed, expected to be 20-30% of the total cost.

Equity funding

🔴 Construction equity not publicly confirmed

A complete equity stack for construction has not been made public.

Debt funding / project finance

🔴 Not yet financially closed

No public construction debt package or financial close has been confirmed for Alaska LNG. Financing appears dependent on binding long-term contracts, final cost estimates, and FID. Federal loan guarantees of up to $30B maybe available from earlier project plans. Update – Glenfarne disclosed in Senate Finance hearings they are not using federal financing. This news raises a new concern about the increased cost of financing.

Firm Instate Gas offtake / take or pay contracts

🟡 Preliminary commitments announced; binding agreement subject to RCA review

A preliminary agreement between Enstar and Glenfarne has been announced for $16/mcf gas with inflation escalation and future volume price reductions. Early stage agreements are announced for sales of gas for the Donlin gold mine project and its planned pipeline from Cook Inlet.

Firm LNG offtake / take-or-pay contracts

🟡 Preliminary commitments announced; binding export contracts not yet confirmed publicly

Glenfarne has reported about 13 MTPA of LNG customer commitments toward a 16 MTPA (Million Tons Per Annum/Year) financing target, but public reporting indicates these still need to be converted into binding legal agreements.

In-state gas supply / producer agreements

🟡 Producer supply precedent agreements announced

Glenfarne says North Slope gas supply commitments are now sufficient to support a Phase 1 FID.

Design / FEED progress

✅ Phase 1 FEED reportedly completed

Worley completed or updated existing Phase 1 FEED (Front End Engineering Design) work at the end of 2025 and has been provisionally selected for EPCM services, subject to definitive agreement. The FEED results have not been shared in order to learn more about new costs or issues identified in the recent work.

FID — Phase 1 pipeline

🔴 Not yet announced

Current public target appears to be 2026. Earlier 2025 targets were missed. No pipe orders have been announced as planned for initial 2026 delivery.

FEED and FID — Phase 2 LNG export

🔴 Not yet announced

Public reporting indicates export terminal FID (Final Investment Decision) may follow in 2027 if contracts and financing are completed.

Construction status

🟡 Early works planning; full construction not yet underway

8 Star filed an early works implementation plan with FERC (Federal Energy Regulatory Commission) in February 2026, however no progress has been reported in monthly updates. Full construction requires FID, financing, final contracts, and execution agreements.

Published schedule / plan

🟡 Pipeline mechanical completion targeted 2028; first gas targeted 2029; LNG exports discussed for 2031

These are developer/project targets, not guaranteed dates. Schedule depends on finance, contracts, permitting compliance, workforce, materials, and construction execution.

The Special Session Call

The 2nd Special Session of the 34th Alaska Legislature was called by the Governor and convened on Thursday, May 21, 2026. The purpose of the session is to focus on the natural gas pipeline project. The session is 30 days and must be adjourned by June 19th. The 3rd Special Session was called just before the 2nd expired to continue working. It started June 20th and must be completed in 30 days, July 19th.

Formally, our first call to the special session from the Governor said:

“to consider passage of bills on subjects germane to the title of the following bill while the bill was under consideration by the Thirty-Foutth Legislature during the second session: H8 381 relating to the taxation of certain natural gas pipeline property: related to municipal taxation limitations; establishing an alternative volumetric tax on natural gas throughput; and relating to the allocation of revenue from the alternative volumetric tax.”

Project Thoughts and Opinions (Return to Top)

Here are some thoughts I’ve had on the bill posted on my website blog. I’ve also received wide engagement on this Facebook Post, which starts off asking the question, “Why are we turning building the gas pipeline into a divisive issue? That strikes me as unnecessary, at best…” If you are on FB, please share your comments! (Or please call or send me an email.) The Post is similar to the blog post below titled “Yes, I support the gasline…”. For slightly more critical and historical perspective of history and challenges we are dealing with, check out Senator Bill Wielechowski’s FB Post. You’ll also find valuable perspectives and information shared in Senator Giessel’s weekly newsletters.

A highly visible group promoting “Build the Line” has emerged from the Alaska Support Industry Alliance. Their site promoting the project and passage of legislation is supportaklng.com A counter point of view, supportive of the project, but critical of the process and advocacy campaign is Dermot Cole reporting on the project and calling out many of the challenges of the project and reasons for the legislation to be studied and not just passed as requested by the developers.

Background Information (Return to Top)

Here is an interesting site with information curated by the Kenai Peninsula Borough https://www.kpb.us/local-governance-and-permitting/leadership-governance/mayor/projects/lng-project

Alaska LNG Pipeline – https://alaska-lng.com/
Alaska Gasline Development Corporation – https://agdc.us/
Glenfarne Group – https://glenfarnegroup.com/

Alaska Public Media – What is the Alaska LNG project? We break it down: Part 1 Part 2: Meet the liquifaction plant

Current bills (Return to Top)

Sign up at the bottom of www.akleg.gov for SMS alerts about changes in the bills) Each linked bill webpage will include options to view actions taken on the bill, the full-text PDF of the bill and any versions, fiscal notes, meeting minutes, audio recordings, and documents.

  • Currently Being Discussed in hearings – check for meetings and documents
  • Available for the Special Session but in the parking lot, and containing a lot of valuable information.
    • HB 3001 and SB 3001 – Special session bills by the governor but not being considered.
    • HB 2001 – (Special Session – Governor’s new bill – Currently not being discussed in the House) – GAS PIPELINE VOLUMETRIC TAX; AGDC; RCA
    • SB 2001 – ((Special Session – Governor’s new bill – Currently being discussed in the Senate Finance Committtee)
    • SB 280 (Currently in Senate Resources) – OIL & GAS PROPERTY TAX; MUNI TAX
  • Reference Bills that were important in the regular session.
    • SB 180 LNG Imports with Amendment #2, which was offered as a vehicle for an alternative volumetric tax to replace the property tax. There are also other amendments offered to Amendment 2 that address issues related to the debate on HB/SB 2001 and HB 381.
    • SB 275 NATURAL GAS PROJECTS/INCOME TAX/SURCHARGE

Pipeline Flow – Where is the gas…Here is a worksheet I’ve used to share information about the flow of gas in the pipeline from the north slope to export and in-state use. It’s from a spreadsheet I can share. I’d be happy to answer questions you may have about it. I also have a spreadsheet for modeling the flow and cost of delivered gas, but it’s not very user-friendly. If you are interested, send me a note, and I can review the scenario manager controls with you. The spreadsheet helped me check the figures from the developers and determine very early in this process that we were not getting all the information on the actual cost of gas and the options to utility rate payers, back when we were being promised $5 gas in phase 1.

Pipeline Revenue – more to be added, but this is a recent summary of revenues from the DOR. Keep in mind cash flows are not discounted for inflation or alternative investments.

Consider this example of the impact of the DOR use of undisciunted cash flows and the actual net present value when discounted for inflation (2.5%] or for alternative use of the money (average perm fund return 8.7%)

DOR Current Law – Sum of Cash Flow  $30,265.00  Millions

DOR Current Law – NPV 2026-2062, 2.5% $17,893.99 

DOR Current Law – NPV 2026-2062, PF $5,989.76 

DOR 381/280 As Introduced, Inflation Discount $13,560.70 

DOR 381/280 As Introduced, PF $4,587.26 

Community Impacts and History (Return to Top)

Alaska Gasline Projects and Pipeline History

What are the impacts? A key issue is timing…

Communities will have high initial costs before and during construction, but low long-term costs. However, the revenue is zero to start, and high later.

There are alternatives to align our community needs with revenue, so we don’t starve our communities while supporting the projects. A volumetric tax paid, based on the flow in the pipeline, is a leading concept found in the bills.

News (Return to Top)

More to add in the future!