By SUZANNE DOWNING
May 20, 2026 – As the Alaska Legislature staggers toward adjournment Wednesday amid procedural chaos, failed votes, and political infighting, the private developer behind the Alaska LNG project issued a blunt statement expressing frustration over lawmakers’ failure to pass tax reforms intended to support construction of the long-discussed gasline.
The statement from Glenfarne came after legislative efforts to advance Alaska LNG-related tax policy collapsed during the final hours of session, following days of Democrat-led amendments unrelated to the project, and attempts to tie the gasline package to other contentious issues such as the defined benefits pension bill.
“Today’s outcome is deeply disappointing and makes it significantly more difficult to advance Alaska LNG at a time when Alaska faces a growing energy shortfall and increasing uncertainty around future energy affordability,” the company said in the statement.
The failure leaves the future of the state-backed megaproject once again clouded by political uncertainty, despite growing public support and a series of recent announcements suggesting momentum was building behind the project.
The Alaska LNG proposal would move North Slope natural gas through an approximately 800-mile pipeline to Southcentral Alaska and an export facility in Nikiski, with the goal of supplying in-state energy needs while exporting liquefied natural gas to Asian markets.
In its statement, Glenfarne emphasized the economic stakes involved.
“Alaska LNG is designed to deliver affordable, dependable energy while generating more than $800 million annually in new state and local tax and royalty revenues and creating thousands of high-paying Alaska jobs,” the company said.
The legislation under debate in Juneau was aimed at restructuring taxes during the early years of the project, when construction costs would be at their highest. The reforms are needed to prevent those costs from driving up construction costs during the initial phase of operations.
Instead, the bill became entangled in end-of-session legislative maneuvering.
Over the past week, lawmakers loaded the measure with amendments ranging from oil tax increases to unrelated policy items, while political leverage battles between the House and Senate majorities further complicated passage. One controversial amendment even sought to allow certain boroughs to negotiate separate tax arrangements with the developer, language that Gov. Mike Dunleavy had indicated could trigger a veto.
The collapse of the legislative process comes just days after new polling showed roughly three-quarters of Alaskans support the Alaska LNG project, and shortly after Glenfarne announced a North Slope gas sales precedent agreement with ConocoPhillips.
But Glenfarne’s statement suggests that public support alone is not enough to overcome Alaska’s longstanding political paralysis surrounding large-scale resource development.
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“Alaska LNG is supported by roughly seventy-five percent of Alaskans because people understand what is at stake: economic growth, energy security, and the opportunity to finally realize the value of Alaska’s natural resources,” the company stated.
“But Alaska has struggled for decades to advance the major infrastructure needed to fully develop those resources, and today’s outcome shows how difficult it remains to align around the durable policy frameworks required to move projects of this magnitude forward.”
While legislative Democrats and members of the bipartisan majority coalition argued they were seeking better terms, more oversight, or additional concessions, critics accused them of effectively sabotaging the project through delay tactics and legislative overcomplication.
The timing is particularly notable as Alaska faces warnings about looming natural gas shortages in Cook Inlet and increasing concerns about long-term energy affordability for Southcentral residents.
Despite the setback, Glenfarne said it is not abandoning the project.
“Glenfarne remains committed to Alaska LNG and will continue working with policymakers, labor organizations, communities, and stakeholders across the state to identify the best path forward,” the company said.
“Alaska still has a historic opportunity in front of it — but realizing that opportunity will require urgency, alignment, and a competitive framework that allows projects like Alaska LNG to move forward.”
3 thoughts on “Glenfarne blasts Legislature after Alaska LNG tax package dies in Juneau gridlock”
Looks like we’ll get more gas from the state vegetable than a gas pipeline!
Delisted middleman Glenfarne has Alaska in a concessionary position and is telling Alaska what it should do and not do, not a good business position for Alaska to be in, furthermore only phase 1 of the LNG line is supported by the North Slopes big dog oil companies not phase 2 which would be a Nikiski exporting terminal which would have competed with oil companies LNG gulf operations.
Summarize; Dunleavy’s gas line has failed.
“Go Ahead and BLAST AWAY” … Just don’t miss and keep your eye on the target!
Simply amazing and embarrassing that these jokers were selected to serve in office!
Constituents can’t be that dumb and ignorant, correct? (It’s not a challenge here!)