This image from the Alaska Gasline Development Corporation’s Wednesday presentation to the Alaska Legislature shows the major components of the proposed trans-Alaska natural gas pipeline. (screenshot)

This image from the Alaska Gasline Development Corporation’s Wednesday presentation to the Alaska Legislature shows the major components of the proposed trans-Alaska natural gas pipeline. (screenshot)

Gas pipeline negotiations continue

The multibillion-dollar trans-Alaska natural gas pipeline project is still advancing, state lawmakers were told in a Wednesday morning hearing.

At a regular quarterly update in Anchorage, executives from the Alaska Gasline Development Corporation told legislators they are working on contracts with potential gas customers in Asia.

The corporation has 15 “letters of interest” from customers, and it is trying to turn those into “definitive agreements,” AGDC President Keith Meyer told reporters before Wednesday’s hearing. Meyer was meeting with potential investors and did not participate in the hearing.

Sen. Cathy Giessel, R-Anchorage, and Rep. Geran Tarr, D-Anchorage, chaired Wednesday’s meeting, and each said they didn’t hear anything particularly groundbreaking from Wednesday’s presentation, which included information from AGDC as well as the Alaska Department of Revenue and the Alaska Department of Natural Resources.

According to the latest figures presented at Wednesday’s meeting, the AKLNG (Alaska Liquefied Natural Gas) project would spend $44 billion to construct a 907-mile pipeline bracketed by a pair of massive industrial plants. At the southern end, in the Kenai Peninsula community of Nikiski, would be a facility designed to export the gas onto tankers bound for ports in Asia.

The plan, which is being pushed by Gov. Bill Walker as a successor to efforts started by former governors Sarah Palin and Sean Parnell, is the latest iteration of ideas that have been on the table since the trans-Alaska Pipeline System began shipping crude oil 41 years ago.

The AGDC, a state-owned corporation, is in charge of developing the project. That includes negotiating contracts with gas providers (North Slope oil companies) and gas buyers (utilities in Asia). With those deals in hand, the state would be able to find investors to fund construction of the project. When the pipeline begins operation, the plan calls for those investors to be paid off over a period of 20-30 years, leaving the state with full ownership.

While a gas pipeline has been a political issue since the 1970s, Department of Revenue deputy commissioner Mike Barnhill told lawmakers, “We may be at that point where we seriously consider how we do this.”

AGDC representatives provided an update on the multi-year federal permitting process and said they have found an American supplier for the steel pipe that may be used in the project. That matters because recent tariffs imposed by President Donald Trump on imported steel pipe had threatened to increase the cost of the pipeline.

“That’s a very good positive,” AGDC vice president Frank Richards said of the American supplier, “because previously we didn’t see that there was 42-inch (pipe) being rolled in the United States.”

Lawmakers are keeping a close eye on the project because the state is likely to shoulder a one-quarter share of construction costs. At $44 billion, that would mean an $11 billion payment.

The Alaska Permanent Fund is not seriously considering an investment at present, lawmakers were told.

Sens. Click Bishop, R-Fairbanks, and Bert Stedman, R-Sitka, each said that it will be absolutely critical for the state to be accurate with its cost estimates. Construction of the trans-Alaska oil pipeline system was three times as expensive as forecast, and a state-owned gas pipeline cannot do that.

“I don’t mind betting the cow,” Stedman said. “There’s no way I’m betting the farm.”


• Contact reporter James Brooks at jbrooks@juneauempire.com or 523-2258.


More in News

The Norwegian Bliss arrives in Juneau on Monday, April 14, 2025. (Jasz Garrett / Juneau Empire file photo)
Ships in port for the week of June 15

This information comes from the Cruise Line Agencies of Alaska’s 2025 schedule.… Continue reading

A ferry worker ties up the Hubbard on Sunday, April 21, 2024, as it docks in Haines, Alaska. (Rashah McChesney / Chilkat Valley News)
Weekend ferry cancellation complicates travel for bike relay, solstice

A ferry cancellation will affect travel plans for some participants of the… Continue reading

Chris Storey shows where he found an incapacitated man in an embankment along Glacier Highway in Lemon Creek during the early morning hours of Monday, June 16, 2025. (Mark Sabbatini / Juneau Empire)
Man who collapses near roadside rescued in early morning hours by passerby

Chris Storey, a former adult care worker who was homeless until April, assists man in distress.

Families write messages in chalk outside the governor's mansion on Friday, June 13, 2025. (Natalie Buttner / Juneau Empire)
Chalking up education funding outrage on the sidewalk at the governor’s mansion

Families protest Dunleavy’s vetoes to education funding with colorful pictures and words.

Boats at Douglas Harbor under mostly clear skies on Sunday, June 15, 2025. (Mark Sabbatini / Juneau Empire)
80°F in Juneau will trigger first-ever National Weather Service heat advisories

Officials say sun’s angle in Alaska makes temperatures feel higher compared to other states.

Christina Love leads the audience in raising their fist, symbolizing telling the truth despite fear on Saturday, June 14, 2025. (Natalie Buttner / Juneau Empire)
Juneau joins nation in ‘No Kings’ protest

More than 1,000 protestors join millions nationwide opposing Trump as he presides over military parade.

A row of tents on Teal Street across the street from the Glory Hall on the morning of Saturday, May 14, 2025. Occupants of the tents received a 48-hour vacate notice from the Juneau Police Department on Friday morning. (Mark Sabbatini / Juneau Empire)
Large homeless encampment on Teal Street gets JPD vacate notice; where will occupants go next?

People who keep moving from place to place under “dispersed camping” policy unsure where they’ll go.

Volunteers look for trash on the Jordan Avenue sidewalk at JAMHI’s Community Litter Pickup event on Saturday, June 14, 2025. (Ellie Ruel / Juneau Empire)
JAMHI hosts community cleanup to kick off 40th anniversary celebration

Local addiction and mental health treatment organization plans summer of events and give-back days.

Most Read