Alaskans often ask me what the greatest risk is to the Final Investment Decision and the ultimate construction of the Alaska LNG Project. My answer has always been clear: the Alaska State Legislature. Recent behavior from our legislators has only confirmed this, as they appear to be positioning themselves to kill the project—and with it, Alaska’s future.
In the Senate Resources Committee hearings, the motivations are on full display. Some legislators view maximizing the state “take” and the funding of budget deficits as the only metrics of success. Others harbor a fundamental disdain for private-sector capital, specifically targeting those in the oil, gas, and energy infrastructure industries. Finally, some are simply obsessed with petty political grudges; for instance, Senator Cath Giessel’s (R – Anchorage) – the chair of the committee – apparent fixation on settling a perceived score with Governor Mike Dunleavy (R – Alaska) by opposing any initiative he supports. This political theater is dangerous, works against the interests of all Alaskans, and puts this transformational project in jeopardy.
Legislators routinely use the phrase, “Of course we all support a gas pipeline…” as a convenient escape from accountability. This disingenuous opening is almost always a precursor to spiteful attacks on the oil and gas industry, the Alaska LNG Project, the private-sector developer Glenfarne, and the state corporation empowered to oversee the State’s interest.
As the source of their power, legislators often cite Article VIII, Section 2 of the Alaska Constitution: “The legislature shall provide for the utilization, development, and conservation of all natural resources belonging to the State… for the maximum benefit of its people.” While this is a foundational mandate, the Legislature’s interpretation seems narrowed to a single focus: generating maximum revenue for the Legislature to spend. One member of the Senate Resources Committee recently had the gall to imply that because the project doesn’t generate $3 billion annually to cover the state’s budget deficit, he cannot support it.
Throughout this entire session, I have not heard a single legislator ask: “What can we do to clear the path for this project to happen?”
Our state is facing a slow decline: an energy crisis, a steady outflow of population, an ever-increasing government budget, and stagnating private-sector activity. Legislators often claim the solution is more spending on a failing education system and state entitlements. Yet, what specific solutions has the Legislature offered to provide long-term energy security? Solving this foundational issue by supporting the Alaska LNG Project clearly meets the threshold of “maximum benefit” for the people.
The real danger of the Legislature’s adversarial approach is the lost opportunity cost. When career politicians shun private investment, projects don’t get built and the economy stalls. Rather than obsessing over how to “cut a fat hog” (extracting every possible penny before a project even begins), Alaska’s legislators need to get out of the way and let the capitalist system work.
Most Alaskans go about their days ignoring or tolerating the antics in Juneau. But make no mistake: the Legislature is about to blow your future. It is time for Alaskans to get engaged.
Harold Hollis is a professional engineer with over 40 years of Alaska design, engineering, and construction experience in Alaska, much of it in the oil and gas industry.
“……….Our state is facing a slow decline: an energy crisis, a steady outflow of population, an ever-increasing government budget, and stagnating private-sector activity………..”
This outflow is too slow. Stop the PFD, and they’ll leave like their tailfeathers was on fire……….and the social spending by the Legislature will be reduced as well. Stop paying them to stay, and they’ll leave.
Nobody is staying in Alaska for the chump change that is the PFD.
For a head of household with kids who blows his kid’s money (a “chump”), it’s real money. I know one man who told me that if they took the PFD away, he’d leave. True enough, after Governor Walker vetoed the “full” PFD, this guy left. Adios, mi amigo! They’re out there. I think they’d be better off down south, and we’d be better off if they were gone, too. But more importantly, even just a $1000 PFD is a $740+ million appropriation. That’s all fine and good, but not when they’re talking about a state income or sales tax. Not… Read more »
“When career politicians shun private investment, projects don’t get built and the economy stalls.” What private investment? So far, the state has wasted about a billion dollars on this pie in the sky scheme. If a gas line were economical, we’d see–would have already seen–private investors falling all over themselves to grab a piece of the profits. But a gas line is not economical, so there’s been no private investment. Have we seen any commitments to buy Alaska’s gas? Any oil company commitments to sell it? No and no. So our legislature isn’t shunning private investment. Because there is none.
“……….What private investment?……….”
The private investment going elsewhere on the planet.
“Have we seen any commitments to buy Alaska’s gas?”
Six buyers or buyer-side entities have preliminary long-term agreements for Alaska LNG: TotalEnergies, JERA, Tokyo Gas, CPC, PTT, and POSCO. Glenfarne said those agreements account for 13 million tonnes per annum of the project’s planned 20 MTPA output. Japan, Taiwan, Thailand, France, and South Korea are the main countries tied to those six entities.
A simple Google search could’ve prevented you from looking like nothing more than a clickbait happy greeny who probably thinks the world is gonna end in 20 years because of cars driving…
Those companies haven’t committed to anything.
Those are not contracts. They’re
Not one of them is a contract.
Take every one of those imaginary contracts, add a nickel, and they’re worth five cents.
I currently hold similar documents to marry Zendaya, Sydney Sweeney, and Anya Taylor-Joy.
No matter what fake name you post as, your gullibility shines through.
“……..Not one of them is a contract………”
They aren’t contracts because there’s no pipe.
“………I currently hold similar documents to marry Zendaya, Sydney Sweeney, and Anya Taylor-Joy………”
No, you don’t.
It’s really simple. There aren’t contracts because industry knows the project is not economically viable.
“……… There aren’t contracts because industry knows the project is not economically viable……….”
Glenfarne says it would be viable if taxes/royalties were lower. But you don’t want to hear that, do you?
Do you deny that businesses in blue cities were “viable” for years (decades) until recently, and said businesses are moving out? How can that be, Steve?
Gullibility confirmed with his inability to understand your marriage example. Glenfarne is just another in a long line of Alaska gasline fantasies. Only someone with no understanding of basic economics would be excited about that.
“……..Gullibility confirmed with his inability to understand your marriage example…….”
It wasn’t an example. It was a lie, because it isn’t true.
Alright, let’s get this straight. You’re really going to hang your hat on some hypothetical and nonbinding Glenfarne “agreement”? Seriously? That’s about as meaningful as a snowman in July on the North Slope.
The man’s point was crystal clear, even if it sailed right over your head: these agreements mean squat. We’ve seen this sorry song and dance before with every gasline fantasy that’s come and gone. It’s the same old tune, different band, and it still doesn’t get built. Wake up.
“…….. You’re really going to hang your hat on some hypothetical and nonbinding Glenfarne “agreement”? Seriously?……..” Why not? If Glenfarne fails, add them to the back of the line of failed attempts. Remember that “Canada My Ass…….It’s Alaska’s Gas”? Like, WTF? Who cares if you sell it to Canada or Japan? Why did so many like you fight the Trans Alaskan attempt? Was it because you hated Palin like so many do Trump, or was it because you thought that somehow YOU (individually) was somehow being cheated? Like I’ve written a million times, I don’t care if Alaskan gas ever goes… Read more »
Standing up for your OG butt-buddy the real Dan Svatass huh Kelsey boy? You’re 5’5″ bald man energy shines through even brighter than my apparent gullibility – how’s it feel knowing that I know who you are but you have no idea who I am?
Careful, anonymous coward. Your sociopathic obsession is showing again. I appreciate knowing you miss me, but I’m still here posting under my real name, like honest decent people with nothing to hide do. Just because you lack the courage and integrity to do the same, doesn’t mean others do, too.
Also, as I’ve noted several times before, you are not nearly as clever as you think are. I know exactly who you are. So do others.
“……..I know exactly who you are. So do others………”
Who is he/she, Editor? “Exactly”…………..
And who are the “others”?
Yes bald coward – who am I? Say it. Let’s all hear who you believe I am, I’ll have nothing to “hide” at that point if you just prove how confident you are in your bet on who “exactly” I am!
Your sociopathic obsession with me is getting really creepy, anonymous coward.
Our (there are obviously a few of us) “sociopathic obsession” with you mirrors the original version you carry forth on Kevin McCabe, and I’m personally enjoying your displeasure with it. If it’s good for one bald guy, it’s good for another.
Wow. Bringing up McCabe AGAIN, anonymous coward? It’s hard to say for certain, but it appears you might be even more obsessed with him than you are with me. You’re definitely more emotional about him and seem to respond in a really personal manner whenever he’s the subject. I wonder why. Such a mystery!!
“……..Such a mystery!!……..”
Not to me. But a real “journalist” should be able to figure it out………..if he isn’t mentally ill………….
It doesn’t take a journalist, anonymous coward, when the object of “mystery” is so obvious in his sociopathic game. Just like Dick Shinary before you, you’re not nearly as clever as you think you are. Narcissists never are, especially the malignant ones.
“……..the object of “mystery” is so obvious………”
Don’t want to go there again, Head Shinary?
Nuff said – you have no idea who I am, and it bugs the hell out of you lol, gotta love it!
“No matter what fake name you post as”
It’s always so obvious, too. But so it goes with dishonest anonymous cowards.
The Landmine is in full shrill mode for the gasline now that the senate has revised the property tax. Private Investment? Where’s the private investment? Last month Korea was paying for it. Who is it this month?
“……….Private Investment? Where’s the private investment?………”
Currently, Glenfarne (75%).
If you believe the Glenfarne fantasy you must be a Dunleavy shill.
https://podcasts.apple.com/us/podcast/glenfarnes-seinfeld-moment-there-is-no-gas-pipeline/id1566242804?i=1000758971930
“………If you believe the Glenfarne fantasy you must be a Dunleavy shill……….” There is only one thing I “believe” about a gas pipeline from the North Slope: It will only happen if the State of Alaska either partially invests along with private investors, or signs a long term deal to keep taxes and/or royalties low, or the feds suddenly want it to happen and makes it so. Secondly, nobody is going to invest in Cook Inlet gas as long as the North Slope gas line games continue and cloud Cook Inlet investment, and those games will continue until either it… Read more »
The only suckerfish are the ones who think Glenfarne will lead us to the gasline promised land.
I don’t believe it. I’m quite confident that Alaskans just like you will f**k it up.
Asked GPT: How much did Glenfarne pay the state of AK for 75% of the gas line? GPT Answer: Short answer: effectively $0 in direct payment. What’s publicly known (and, importantly, what is not disclosed): The Alaska Gasline Development Corporation transferred 75% ownership of the Alaska LNG / gasline project to Glenfarne Group under a confidential agreement. Reporting and legislative summaries indicate this was not a cash sale, but an in-kind exchange: The state contributed existing assets (permits, right-of-way, engineering work, data, etc.) Glenfarne committed to funding and completing front-end engineering/design (FEED), advancing the project, and raising capital. Multiple sources… Read more »
“……..Multiple sources describe it bluntly as the state “giving” or “turning over” 75% rather than selling it for proceeds……..”
“Selling” exactly what? Permission to invest? Were there any other buyers out there who were/are willing and capable to “funding and completing front-end engineering/design (FEED), advancing the project, and raising capital”? If so, who is that?
“………The state essentially traded equity for execution risk transfer……..”
How much “equity” does the state have in the TAPS?
What has Glenfarne produced? What happened to FID by the end of 2025? They are insisting on substantial tax relief for a project that is supposed to be so exceptional–that does suggest the outlook is not nearly as rosy or profitable as all of the boosters would have you believe. Further, how do they plan to rally support when they won’t share any details–like how much the project will cost (in-state and export phases) and what the final cost for in-state gas delivery will be. I’ll oppose this project all day and night long until there is some transparency–we residents… Read more »
“…….. I’ll oppose this project all day and night long until there is some transparency………” Works for me, and no “transparency” needed. I’ve written it a billion times: I’m in it for the gas for my home and local electric utilities, and there’s plenty of that in Cook Inlet. Eventually, it will be produced from somewhere, and I can go without it a whole lot longer than anybody else around here. Been there, done that. I was one of the first homeowners in the Valley burning natural gas. Moreover, that North Slope pipeline will just bring more people, which I don’t… Read more »
“……….Private Investment? Where’s the private investment?………”
Currently, Glenfarne (75%).
-Reggie
Also Reggie: Well, they didn’t actually pay anything for the 75%, obviously.
Lol. Stay sharp, buddy.
“………Also Reggie: Well, they didn’t actually pay anything for the 75%, obviously……….”
Because the only thing to pay for is permission to play the game, and that would be a stupid purchase. You wonder why there aren’t more players? That attitude right there should be your answer……………but you still don’t get it.
Reggie, Reggie, Reggie… You are the one who cited the 75% Glenfarne owns as private investment. I was just pointing out that private investment got that 75% very cheap (/there still hasn’t been near as much “private investment” as there has been public investment (/spending) between Dunleavy and Walker, on the gas line. Full stop. I would bet flipping your 75% in the other direction would be much closer to the mark) I agree with one of your options for how this gets built. If I were an oil company I wouldn’t trust us to stick with any particular tax… Read more »
“………You are the one who cited the 75% Glenfarne owns as private investment. I was just pointing out that private investment got that 75% very cheap…….” Boring, Boring, Boring………. Again, that’s 75% of nothing but permission to invest. The 75% becomes meaningful after gas begins loading onto ships. The Glenfarne investment began with new pre-building prep and agreement acquisitions, but really starts with ordering materials and hiring labor to build. The state’s investment for 25% of ownership? Tell me more about that, please………… “……….This gets railroaded by the Feds or it doesn’t happen………” Probably, but this is for damned sure:… Read more »
“The state’s investment for 25% of ownership? Tell me more about that, please…………”
Since you asked nicely… 😉
Direct public funds:
I’m genuinely pretty confused at what point you are trying to make.
“………Since you asked nicely……..” I always start nicely, but get ugly after my adversary goes ugly. You are clearly very nice. Thank you. 🙂 “………Alaska legislators and AGDC officials put the state’s direct contribution at ~$634.9 million……….” That’s a pretty good deal for 25% of a pipeline and terminal expected to cost some $50 billion to build. Imagine if this gas line goes 800% over cost estimates like TAPS did. 25% of 50 billion is $12.5 billion dollars. Take $634.9 million from that leaves a $11.865 billion equity donation to the State of Alaska for the costs of dealing with all… Read more »
“I always start nicely, but get ugly after my adversary goes ugly.”
Your capacity for gaslighting and outright lying is impressive, even for an anonymous coward.
Editor, thanks for the example of an adversary who went ugly. You have a strong and reliable penchant for proving yourself the very person everybody describes. McCabe pinned you perfectly.
Why are you bringing up McCabe again? It’s fascinating how quick you always are to pimp for him.
“………Why are you bringing up McCabe again?………”
Because your Reggie Derangement has become part and parcel of your original McCabe Derangement…………which may also be part and parcel of your Trump Derangement. Which is the chicken and which is the egg has no meaning. Reggie, Kevin, and Donald have become one and the same. We keep your heart beating. Your blood flowing hot. We are your raison d’exister.
No derangement here. Just trying to mind my own business, but you always seem to be nipping at my heels with another emotional and very personal defense of Rep. Kevin J. McCabe of Big Lake. Sounds like you know a thing or two about derangement, though. Thanks for providing such a vivid example.
“……..No derangement here……….”
There are Facebook posts out there from years ago outlining your political rage. There are numerous comment sections on this website with the same. Every time you drag up your Epstein BS is yet another example of your derangement. It’s an illness, Editor.
Nope. Anonymous, evidence-free claims by anonymous online cowards are meaningless. So are in-person evidence-free claims, as Rep. Kevin J. McCabe of Big Lake has found out on multiple occasions. It’s truly amazing how much you two have in common. Remarkable coincidence, don’t you think? Making evidence-free claims is also why McCabe is poised to lose the First Amendment case he would’ve been wise to settle years ago. A more principled, less insecure person would’ve apologized and moved on, just like former senator and current Kenai Peninsula Borough Mayor Pete Micciche did when he was in similar 1A hot water. Instead,… Read more »
“………. It’s truly amazing how much you two have in common………”
I’m covered with more hair than a sasquatch, Bald Guy………..
“……… Sounds like you know a thing or two about derangement, though……..”
I’m learning, because I’m studying it. It’s a huge development of late. Mental health has taken a nose dive world wide. We can all see it………and if you don’t, you’re in denial. The derangement phenomenon took off like a rocket immediately upon Donald Trump winning the Republican POTUS nomination in 2016. It was amazing. And it has grown. Dramatically.
Frankly, I think it was you all along. By you, I mean you plural: the mass media. You’ve been fucking people’s heads over for decades now.
I’m curious … do you think Rep. Kevin J. McCabe of Big Lake would approve of your efforts here on his behalf? Do you think he’d be okay with the way you’re defending him so passionately?
“………do you think Rep. Kevin J. McCabe of Big Lake would approve of your efforts here on his behalf?……..”
Probably not. Who cares? You? LOL!!
“……….“The state’s investment for 25% of ownership? Tell me more about that, please…………” Another couple of questions about the state’s 25% ownership of the pipe and terminal: 1) Does this mean that the state gets 25% of the billing, maintenance costs, repair costs, explosion liability, security costs, etc? If so, how does that pencil out? If not, why not? 2) Is that 25% “investment” limited to what the state already has invested? So the state does not contribute to construction costs? 3) If Glenfarne decides to pull stakes, and can’t find a buyer for their share, does that mean that the… Read more »
Spare me the pearl clutching. The owner of Glenfarne said they’d be at FID before the legislature went into session at the end of 2025, but now they absolutely must have a massive tax break – THEN they’ll surely reach FID! Yeah, right. Glenfarne is not any more of a credible actor than the legislature at this point. Either Trump decides he wants this thing built and just makes it happen, or it doesn’t happen. The AK legislature is just window dressing, clearly we aren’t going to pony up the billions to build it, but equally clearly a lack of… Read more »
“……… If gas starts flowing we can have a fight over how much to tax it………”
The tax fight begins with the dream, and it continues throughout the life of the pipe (if it ever gets built). If I had a nickel for every time somebody proposed increased oil taxes on Alaskan oil production, I’d buy a new gas pipeline for you.
The tax fight is the reason why the pipe doesn’t exist. Glenfarne is telling you that. You just don’t want to hear it.
If Mr. Hollis truly believes what he says, “…Alaska’s legislators need to get out of the way and let the capitalist system work,” then yes, the Legislature can quit taking up requests to reduce project taxes and Glenfarne can find the necessary capital (is it $30 billion, $40 billion, or $80 billion) and let the capital markets fund it if it is truly a profitable project. However, that is not what is happening. Glenfarne insisted for almost one year that a Final Investment Decision (FID) would be announced by the end of 2025; almost four months later, no FID has… Read more »
“………Why should the Legislature provide any tax breaks, subsidies, or incentives to bring this project to market?………” Why should the State of Alaska “own” 25% of the pipe, and where is that investment money coming from? You want “transparency” from Glenfarne? Well, I want “transparency” on that remaining 25%. Why? Because as a resident of the state, that 25% is partly on me. “……… If this project was feasible and would generate income, Hilcorp, Exxon, ConocoPhillips, Santos, etc. would be clamoring with support. Why are they so silent?!?!?……….” Because it isn’t profitable. It’s “feasible”, but unless the taxes and royalties come… Read more »
Harold,
I loves me a good cup of optimism,but you and I both know our gas is coming from Kittimat.
ahh yes, the legislature’s fault that big oil companies don’t want to disclose any specifics about finances related to the project. you bootlickers are multiplying daily.
“………. big oil companies don’t want to disclose any specifics about finances related to the project………”
Ever hear the term “proprietary information”?
So what. If they want their massive tax exemption cough up the data.
Exactly. Way too much accommodation to industry, by self-dealing legislators willing to shill for them.
Looks like they don’t want it bad enough. It might be that they aren’t interested in a half century of shake down after their investment. I wouldn’t do it. This planet is full of gas. Why get it here if the locals are so hostile?
If you don’t want to make a gas production to keep pace, whether Cook Inlet or North Slope gas, you can pay the cost with the rest of us.
Or, preferably, get the Hell out………..:
https://alaskabeacon.com/2026/04/28/alaskas-energy-cliff-isnt-coming-its-already-here/
Too many self-dealers in Juneau willing to shill for industry for a campaign donation.