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News from the Alaska State Legislature, the Office of Alaska Republicans
For Immediate Release: July 16, 2026

AK LNG Legislation Poisoned

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JUNEAU – Today, legislation inhibiting the construction and development of the AK LNG Project passed the Senate with a vote of 11 to 8.

After 60 days of special session, the Democrat-lead Majority again passed dead-on-arrival legislation inhibiting development of the AK LNG Project.

The primary policy proposals limiting the project include:

S-Corporation Tax: Creating a new s-corp tax would add excess taxes on oil and gas businesses across the state, including those trying to maximize the gas we get from Cook Inlet until the gas line can be completed. It makes no sense to tax the very businesses creating energy for our families and businesses. This proposal has implications far beyond the gas line and should be debated on its own merits, especially since the conference committee exempted the gas line from the new tax.

Project Labor Agreements: Glenfarne signed an agreement with the goal of employing as many Alaskans as possible. However, the legislation passed today requires Glenfarne to exclude contractors, essentially forcing the developer to use only union companies. It is a severe overreach of government power to tell a private company who they can and cannot hire.

Project Completion Deadline: Glenfarne, of course, wants to build the AK LNG Project as rapidly as possible. However, like any other large-scale infrastructure project, there may be potential delays, and Alaska’s unique location, accessibility, and weather makes hard deadlines a challenge. With the possibility of supply chain disruptions far outside of the developer’s control a real threat, financially threatening the company attempting to lower energy costs across the state eludes common sense.

If these points of contention sound familiar, it’s because they are.

For the past two months, both the Senate Republican Caucus and the Executive Branch raised concerns regarding these issues, however, the Majority Caucus forced through yet another bill nearly identical to the previous gasline legislation which the developer plainly told us would make it impossible to finance the gas line just four weeks ago.

It seems hard to reach any conclusion other than this: the Democrat-dominated Majority Caucus does not want the AK LNG Project to be built.

For the Majority Caucus, the gasline legislation is not centered around what is best for Alaskans – it is a big-government money grab.

The time available to pass a clean bill that helps the project financing move forward is running out. Tentative supply agreements signed last year will begin expiring in a couple of months. The inevitable result will be cost increases. We will lose potential customers to other natural gas projects that are actively courting partners and financing, particularly the Kitimat expansion in British Columbia.

The existential energy crisis facing our state is in the hands of Democrat-lead Majority.

They want higher taxes and higher energy costs so long as it brings more money into state coffers, even at the expense of everyday Alaskans. Their failure to pass reasonable gasline legislation proves it.

Alaska’s economy, our businesses, communities, and families will not be able to survive with the climbing rates of energy, pushing more people and businesses out of state. They are counting on the Legislature to deliver a workable legal framework. Every Alaskan should know who is at fault.

On July 27, the fourth special session of the 34th Legislature will begin.

The Senate Republican Caucus will continue to fight. We will continue to fight against taxes that bankrupt our businesses. We will continue to fight for affordable energy that can power not just our communities, businesses, and state – we will continue to fight for energy that powers Alaska and the globe.

More importantly, we will continue to fight for you. The everyday Alaskan who is working hard to put food on the table, raise a family, build a career, contribute to their community, and make the Great Land a home to be proud of.

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