{"id":295,"date":"2026-06-04T20:37:11","date_gmt":"2026-06-04T20:37:11","guid":{"rendered":"https:\/\/alaskamovingnetwork.com\/?p=295"},"modified":"2026-06-04T20:37:11","modified_gmt":"2026-06-04T20:37:11","slug":"glenfarne-releases-alaska-lng-cost-estimates-as-skeptical-legislators-press-for-details","status":"publish","type":"post","link":"https:\/\/alaskamovingnetwork.com\/?p=295","title":{"rendered":"Glenfarne releases Alaska LNG cost estimates, as skeptical legislators press for details"},"content":{"rendered":"
\n

The developer of the Alaska LNG project released its first specific public cost estimates Wednesday for the proposed 800-mile gas pipeline and associated infrastructure.<\/p>\n

Read more It\u2019s no joke: A second Dan Sullivan says he really does want to be Alaska\u2019s next senator<\/a><\/p>\n

The developer, Glenfarne, told state senators it estimates the full project will cost between $44.5 billion and $54.5 billion.<\/p>\n

The first phase of the project, the pipeline itself, is likely to cost between $13.2 and $16.9 billion, according to the company\u2019s estimates.<\/p>\n

Glenfarne Alaska head Adam Prestidge presented the figures to the Senate Finance Committee on Wednesday, as lawmakers considered tax breaks for the project in a special session called by Gov. Mike Dunleavy.<\/p>\n

\u201cWhat we’ve done here is present the numbers that we think represent actual construction costs for the project,\u201d Prestidge said.<\/p>\n

Cost projections have been a sticking point for skeptical legislators, who say they\u2019re not willing to advance the tax breaks the governor and Glenfarne have requested without confidence the project will broadly benefit Alaskans and the state\u2019s troubled finances.<\/p>\n

As recently as Tuesday, Glenfarne refused to release its internal estimates, saying that doing so could compromise negotiations with suppliers and customers.<\/p>\n

Lawmakers have questioned inflation-adjusted estimates released by the Department of Revenue pegging the project\u2019s cost at around $46 billion.<\/p>\n

Consultants with the firm Pegasus-Global told legislators Tuesday that other large LNG projects routinely ran well over budget, sometimes by many billions of dollars. Two-thirds of LNG projects came in over budget, with cost overruns averaging 70%, according to a 2014 study by the firm EY that the consultants cited in their presentation.<\/p>\n

But on Wednesday, after meeting with the co-chairs of the Senate Finance Committee, Prestidge said he\u2019d agreed to share a range of estimates in an attempt to \u201cthread the needle of appropriate disclosure.\u201d Prestidge said the estimates were based on engineering studies, bids from vendors, economic conditions and the company\u2019s experience developing smaller projects in other regions.<\/p>\n

Read more Deep sea observation station that tracks climate change set to be pulled from Gulf of Alaska<\/a><\/p>\n

Glenfarne has repeatedly said the state would not be on the hook for cost overruns. But because the first phase of the project is slated to provide gas primarily for in-state use, legislators have said they\u2019re concerned cost overruns could translate into higher gas and electricity bills for homes and businesses on the Railbelt.<\/p>\n

\u201cPeople ask, \u2018Well, why do you even care? That’s Glenfarne\u2019s problem,\u2019\u201d said Anchorage Republican Sen. James Kaufman. \u201cI guess there’s kind of a, \u2018Yeah, but,\u2019 there. It’s true in a way, but then the impact of that is the cost of the consumer.\u201d<\/p>\n

In an attempt to reassure lawmakers, Prestidge told legislators Glenfarne supported adding a provision to the tax relief bill that \u201cprohibits cost overruns on the project from being borne by either the state or the regulated ratepayers who are buying gas off the pipeline.\u201d<\/p>\n

During the regular legislative session, the governor\u2019s office told lawmakers that caps on the price of gas that Alaska utilities would purchase from the project \u2014 one way to ensure that ratepayers don\u2019t bear the cost of overruns \u2014 were unworkable. But in an interview with Fairbanks public radio station KUAC on Tuesday, Dunleavy said he supported modifying the bill to ensure \u201cthe state will not be on the hook for any overages, and that the people of Alaska, the ratepayer, won’t be on the hook.\u201d<\/p>\n

Glenfarne also told legislators it had agreed with Southcentral gas utility Enstar on a maximum price for gas from the Alaska LNG project: $16 per 1,000 cubic feet, indexed to inflation. Enstar told legislators in an earlier presentation that that\u2019s likely less than the cost of imported gas and in line with new contracts for gas from Cook Inlet. That price, though, is significantly higher than current gas prices, and prices wouldn\u2019t drop until major new natural gas customers come online.<\/p>\n

Sen. Cathy Giessel, an Anchorage Republican who as chair of the Senate Resources Committee repeatedly pressed Glenfarne to share its cost estimates to help lawmakers devise a workable tax for the project, said the $44.5 billion to $54.5 billion range the company presented still strikes her as low, and she said the wide range meant the estimate was still \u201cpretty loosey.\u201d<\/p>\n

\u201cRemember, these are billions,\u201d she said.<\/p>\n

Giessel said she still had numerous unanswered questions about the project: how Alaska labor unions fit into the planned workforce, how the developer plans to house pipeline construction workers, the impact of gas drilling on oil production, and even things as specific as the coatings that would be applied to the steel used in the pipeline.<\/p>\n

Giessel said she thinks the Legislature is \u201crushing\u201d the tax proposal.<\/p>\n

\u201cI think we need to continue this work in 2027, when we can spend more time on it, when Glenfarne themselves can get more secure numbers, and we just all have more details,\u201d she said.<\/p>\n

The special session is set to continue through June 19. Dunleavy said last month he\u2019d call special sessions repeatedly until lawmakers passed an acceptable bill.<\/p>\n

Read more Alaska one of only 2 states to see increase in SNAP participants in 2025<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

As recently as Tuesday, Glenfarne refused to release its estimates, a sticking point for skeptics. But on Wednesday, the company said it expected the project would cost $44.5 to $54.5 billion.<\/p>\n","protected":false},"author":1,"featured_media":294,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-295","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\nGlenfarne releases Alaska LNG cost estimates, as skeptical legislators press for details - Alaska Moving Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/alaskamovingnetwork.com\/?p=295\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Glenfarne releases Alaska LNG cost estimates, as skeptical legislators press for details - Alaska Moving Network\" \/>\n<meta property=\"og:description\" content=\"As recently as Tuesday, Glenfarne refused to release its estimates, a sticking point for skeptics. 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