By SUZANNE DOWNING
June 8, 2026 – Alaska lawmakers will return to work Monday for yet another week of special session hearings centered on the Alaska LNG Project, with the Senate Finance Committee devoting nearly every day this week to testimony and presentations on Senate Bill 2001, the proposed gas pipeline volumetric tax measure.
The special session, called by Gov. Mike Dunleavy to address tax terms for the Alaska LNG Project, enters its third week with no clear resolution in sight as legislators continue examining proposals intended to improve the project’s economics and move it toward construction.
The Senate Finance Committee will begin Monday with a presentation from the Department of Revenue on SB 2001, followed by invitation-only testimony from the state’s three North Slope producers — Hilcorp, ConocoPhillips, and ExxonMobil — during an afternoon hearing.
The measure would replace traditional property tax treatment on portions of the project during development and early operations with a volumetric tax structure based on gas throughput. The change would make the massive project more attractive to investors and lenders by reducing upfront tax burdens before gas begins flowing.
On Tuesday, senators will hear from the Regulatory Commission of Alaska and Enstar Natural Gas Company, which has been negotiating with Glenfarne Alaska regarding future Southcentral gas supplies.
Midweek testimony shifts to local governments, which have raised concerns about the potential loss of future property tax revenue if the state alters the taxation framework for the project. Representatives from the Municipality of Anchorage, Fairbanks North Star Borough, Matanuska-Susitna Borough, and Denali Borough are scheduled to testify Wednesday morning, while the Kenai Peninsula Borough is set to appear Wednesday afternoon.
Additional committee hearings are scheduled Thursday and Friday.
Meanwhile, the House Finance Committee is expected to continue work on House Bill 381, the companion legislation dealing with oil and gas property taxation and municipal tax issues. The House committee is scheduled to meet Monday at 11 am.
The hearings come just days after Glenfarne Alaska President Adam Prestidge provided lawmakers with updated project cost estimates ranging from $44.5 billion to $54.5 billion, figures legislators had been requesting throughout both the regular session and the special session.
Continued delays could increase costs further and send troubling signals about Alaska stability to investors and international partners evaluating participation in the project.
The Alaska LNG Project would transport North Slope natural gas through an approximately 800-mile pipeline to Southcentral Alaska and a proposed export facility in Nikiski, providing both domestic gas supplies and liquefied natural gas exports to Asian markets.
