The greatest risk to Alaska LNG? The Alaska State Legislature

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.

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Reggie Taylor
40 minutes ago

“……….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.