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Japan Mulls Support for Alaska LNG Project Over Trump Tariff Threat

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Japan Mulls Support for Alaska LNG Project Over Trump Tariff Threat


Japan could offer a significant boost to the nascent $44bn Alaska LNG project. Against the backdrop of looming Trump tariffs and the administration’s express goal to boost the state’s hydrocarbon production, Japan could emerge as a backer of the massive Alaska LNG project.

Looking for ways to reduce Japan’s nearly $60bn trade imbalance, the country has signaled willingness to increase its U.S. energy imports. The EU, including Commission president Ursula von der Leyen, is following a similar approach hoping that the willingness to purchase greater amounts of American LNG can starve off tariff action. 

Currently Japan imports around 10 percent of its LNG needs from Russia, an increasingly unreliable and geopolitically fraught supply. Japan’s Prime Minister Shigeru Ishiba recently described the country’s need to diversify its supplies.

Alaska is located near the great circle route the Pacific, the shortest sailing distance between the U.S. West Coast and Asia. The planned Alaska LNG export terminal sits just 2,500 nautical miles from Japan. 

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A commitment to support the project could come as early as this week during Ishiba’s planned visit to the U.S. capital. 

Alaska’s energy production has been on a downward slope for around three decades, despite vast remaining oil and gas resources.

Discussions over tapping into the state’s significant gas resources on the North Slope and shipping them to markets in Asia in the form of liquefied natural gas, have been ongoing for more than a decade. 

A rival proposal, Qilak LNG, spearheaded by former Lieutenant Governor of Alaska, Mead Treadwell, envisions a liquefaction plant on site at the shores of the Beaufort Sea and export via ice-capable LNG carriers, akin to Russia’s model.

Both the Yamal LNG and the Arctic LNG 2 project, Russia’s flagship projects, rely on a fleet of purpose-built Arc7 LNG carriers. A similar transport system has been proposed to allow LNG from Alaska to compete against Russia supply, partly due to the shorter shipping distance through the Bering Strait compared to the Russian projects further west.

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The most recent proposal for Alaska LNG envisions an 800-mile pipeline delivering gas to Nikiski on the Kenai Peninsula. Year-round ice free waters would eliminate the need for ice-class vessels. 

However, the project’s price tag, estimated at $44bn raised questions over its competitiveness compared to Russian LNG from the Arctic. With Arctic LNG 2 sanctioned and Yamal LNG facing an uphill battle to escape a similar fate, there may be an opening for the Alaska LNG project delivering up to 20mn tonnes of LNG per year.

A return to a no-pipeline option with direct shipments from the North Slope has also been discussed, according to industry insiders. A number of new built ice-class LNG carriers, originally intended for Arctic LNG 2, remain up for grabs, likely at a substantial discount at South Korea’s Hanwha yard.

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Over $150K worth of drugs seized from man in Juneau, police say

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Over 0K worth of drugs seized from man in Juneau, police say


JUNEAU, Alaska (KTUU) – An Alaska drug task force seized roughly $162,000 worth of controlled substances during an operation in Juneau Thursday, according to the Juneau Police Department.

Around 3 p.m. Thursday, investigators with the Southeast Alaska Cities Against Drugs (SEACAD) approached 50-year-old Juneau resident Jermiah Pond in the Nugget Mall parking lot while he was sitting in his car, according to JPD.

A probation search of the car revealed a container holding about 7.3 gross grams of a substance that tested presumptively positive for methamphetamine, as well as about 1.21 gross grams of a substance that tested presumptively positive for fentanyl.

As part of the investigation, investigators executed a search warrant at Pond’s residence, during which they found about 46.63 gross grams of ketamine, 293.56 gross grams of fentanyl, 25.84 gross grams of methamphetamine and 25.5 gross grams of MDMA.

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In all, it amounted to just less than a pound of drugs worth $162,500.

Investigators also seized $102,640 in cash and multiple recreational vehicles believed to be associated with the investigation.

Pond was lodged on charges of second-degree misconduct involving a controlled substance, two counts of third-degree misconduct involving a controlled substance, five counts of fourth-degree misconduct involving a substance and an outstanding felony probation warrant.

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Sand Point teen found 3 days after going missing in lake

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Sand Point teen found 3 days after going missing in lake


SAND POINT, Alaska (KTUU) – A teenage boy who was last seen Monday when the canoe he was in tipped over has been found by a dive team in a lake near Sand Point, according to a person familiar with the situation.

Alaska’s News Source confirmed with the person, who is close to the search efforts, that the dive team found 15-year-old Kaipo Kaminanga deceased Thursday in Red Cove Lake, located a short drive from the town of Sand Point on the Aleutian Island chain.

Kaminanga was last seen canoeing with three other friends on Monday when the boat tipped over.

A search and rescue operation ensued shortly after.

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Alaska Dive Search Rescue and Recovery Team posted on Facebook Thursday night that they were able to “locate and recover” Kaminanga at around 5 p.m. Thursday.

“We are glad we could bring closure to his family, friends and community,” the post said.

This is a breaking news story and will be updated when more details become available.

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Opinion: Homework for Alaska: Sales tax or income tax?

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Opinion: Homework for Alaska: Sales tax or income tax?


iStock / Getty Images

This is a tax tutorial for gubernatorial candidates, for legislators who will report to work next year and for the Alaska public.

Think of it as homework, with more than eight months to complete the assignment that is not due until the November election. The homework is intended to inform, not settle the debate over a state sales tax or state income tax — or neither, which is the preferred option for many Alaskans.

But for those Alaskans willing to consider a tax as a personal responsibility to help fund schools, roads, public safety, child care, state troopers, prisons, foster care and everything else necessary for healthy and productive lives, someday they will need to decide on a state income tax or a state sales tax after they accept the checkbook reality that oil and Permanent Fund earnings are not enough.

This homework assignment is intended to get people thinking with facts, not emotions. Electing the right candidates will be the first test.

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Alaskans have until the next election because nothing will change this year. It will take a new political alignment led by a reality-based governor to organize support in the Legislature and among the public.

But next year, maybe, with the right elected leadership, Alaskans can debate a state sales tax or personal income tax. Plus, of course, corporate taxes and oil production taxes, but those are for another school day.

One of the biggest arguments in favor of a state sales tax is that visitors would pay it. Yes, they would, but not as much as many Alaskans think.

Air travel is exempt from sales taxes. So are cruise ship tickets. That’s federal law, which means much of what tourists spend on their Alaska vacation is beyond the reach of a state sales tax.

Cutting further into potential revenues, state and federal law exempts flightseeing tours from sales tax, which is a particularly costly exemption when you think about how much visitors spend on airplane and helicopter tours.

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That leaves sales tax supporters collecting from tourists on T-shirts, gifts for grandchildren, artwork, postcards, hotels, Airbnb, car rentals and restaurant meals. Still a substantial take for taxes, but far short of total tourism spending.

An argument against a state sales tax is that more than 100 cities and boroughs already depend on local sales taxes to pay for schools and other public services. Try to imagine what a state tax piled on top of a local tax would do to kill shopping in Homer, already at 7.85%, or Kodiak, Wrangell and Cordova, all at 7%, and all the other municipalities.

Supporters of an income tax say it would share the responsibility burden with nonresidents who earn income in Alaska and then return home to spend their money.

Almost one in four workers in Alaska in 2024 were nonresidents, as reported by the state Department of Labor in January. That doesn’t include federal employees, active-duty military or self-employed people.

Nonresidents earned roughly $3.8 billion, or about 17% of every dollar covered in the report.

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However, many of those nonresident workers are lower-wage and seasonal, employed in the seafood processing and tourism industries, unlikely to pay much in income taxes. But a tax could be structured so that they pay something, which is fair.

Meanwhile, higher-wage workers in oil and gas, mining, construction and airlines (freight and passenger service) would pay taxes on their income earned in Alaska, which also is fair.

It comes down to what would direct more of the tax burden to nonresidents: a tax on income or on visitor spending. Wages or wasabi-crusted salmon dinners.

Larry Persily is a longtime Alaska journalist, with breaks for federal, state and municipal public policy work in Alaska and Washington, D.C. He lives in Anchorage and is publisher of the Wrangell Sentinel weekly newspaper.

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