Alaska
Opinion: A new energy project, new risks and new responsibilities for Alaska
Alaska may soon face major decisions about the future of the Alaska LNG project and, if so, the Legislature will need to ensure that every step serves the best interests of Alaskans.
It is essential to remember that Senate Bill 138, the blueprint for state involvement in Alaska LNG, was passed in 2014 for a very different project: one led by ExxonMobil, BP and ConocoPhillips, with a key role fulfilled by TransCanada. Today’s project is led by a private-equity developer, Glenfarne, pursuing a structure that diverges dramatically from what lawmakers contemplated more than a decade ago. When a project changes this much, the underlying statutes need to be revisited.
In June, the Alaska Gasline Development Corp.’s president told his board that AGDC would be coordinating with the developer, the administration and the Legislature regarding legislation needed to support project development. He also noted that AGDC would work with the administration and Legislature on policies required to exercise the corporation’s option to invest 5% to 25% equity at Final Investment Decision, or FID. When AGDC itself signals that legislation is necessary, we should look forward to their outreach.
SB 138 also assigned important responsibilities to the departments of revenue and natural resources that may require legislative action. One key responsibility is the Legislature’s authority to approve major gas project contracts negotiated by the DNR commissioner. The law clearly states that balancing, marketing and gas sale agreements for North Slope gas cannot take effect without explicit legislative authorization. That statutory requirement was intentional and recognizes a project of this scale demands legislative oversight.
We also know that the pressure for speed on complex megaprojects often backfires, sometimes creating more problems than it solves. The Legislature must balance the legitimate need for progress with the responsibility to ensure Alaskans are not asked to assume unreasonable financial risk. As Speaker Bryce Edgmon recently observed, legislation of this magnitude “could dominate the session” and “take significant time.” Senate Finance Co-Chair Bert Stedman was even more direct: if we get this wrong, it could be “detrimental for generations.”
Last week, 4,000 miles away in Washington, D.C., Glenfarne and POSCO International announced a major strategic partnership. It is a meaningful milestone. But Alaska has seen similar announcements before, and it does not diminish the need for hard questions. If anything, it raises them.
Final Investment Decision is when investors and lenders commit billions based on the project’s economics and the state’s fiscal terms. Any legislation affecting property taxes, payments-in-lieu-of-taxes, aka PILTs, state equity, fiscal stability, or upstream royalties and production taxes must be decided before this takes place.
The Legislative Budget and Audit Committee has focused on providing lawmakers and the public with the information needed to understand the choices ahead. I revisited the Legislature’s 2014 “Alaska LNG: Key Issues” report, which helped lawmakers evaluate the original SB 138 framework. Building on that model, I directed our consultants, GaffneyCline, to prepare an updated “key issues” report; not to endorse or oppose the current project, but to provide a high-level overview of potential policy choices, which should be available to the public within the next few days.
The refreshed “key issues” report will be an important starting point. I ask Alaskans to approach it with an open mind and to read it as objectively as possible, free from assumptions shaped by past disappointments or early optimism. Keep asking tough questions of the Legislature, AGDC, Glenfarne and the administration. Don’t assume the project is a done deal or a doomed one. This is not about cheerleading or obstruction, but insisting on rigorous analysis, strong oversight and a fair deal for our children and grandchildren.
Some Alaskans have raised questions about a potential conflict of interest: GaffneyCline is a subsidiary of Baker Hughes, which recently announced agreements with Glenfarne to help advance the Alaska LNG project. I share those concerns, which is why I have met with the Legislature’s director of Legal Services and with GaffneyCline’s North America director. I have been assured by GaffneyCline’s leadership that no one outside the GaffneyCline project team has influenced their analysis, and that their global reputation for independence and trust remains intact. Still, we also must fully vet this issue when we convene in Juneau next month. Transparency and independence are non-negotiable.
The recent ceremony in Washington, D.C., with Glenfarne and POSCO International underscores the project’s potential; however, the authority to determine how and when Alaska monetizes its resources rests here, not with dignitaries celebrating overseas commitments. Our future will be determined in Alaska, by Alaskans, based on the fullest and most honest understanding of the choices before us.
Sen. Elvi Gray-Jackson, D-Anchorage, represents Senate District G, which includes Midtown, Spenard and Taku Campbell in Anchorage. Sen. Gray-Jackson serves as the chair of the Legislative Budget and Audit Committee.
• • •
The Anchorage Daily News welcomes a broad range of viewpoints. To submit a piece for consideration, email commentary(at)adn.com. Send submissions shorter than 200 words to letters@adn.com or click here to submit via any web browser. Read our full guidelines for letters and commentaries here.
Two US soldiers were wounded by a brown bear during a training exercise in Alaska on Thursday, the US Army stated.
Anchorage Daily News reported that the soldiers were from the 11th Airborne Division, and that the exercise had been a “land navigation training event” near Joint Base Elmendorf-Richardson.
State wildlife officials said that the bear attack seemed to be a defensive one, from a bear which had recently emerged from its den. Staff members from the Alaska Department of Fish and Game collected evidence at the scene in an attempt to learn more about the bear, such as its species and gender.
“The incident is currently under investigation, and we are working closely with installation authorities and local wildlife officials to gather all relevant information and ensure the safety of all personnel in the area,” the 11th Airborne Division said in a statement, reported ABC News.
ABC News also cited an 11th Airborne Division spokesperson, Lt.-Col. Jo Nederhoed, who said that the two soldiers had been seriously wounded, but were receiving care at a hospital in Anchorage, and had shown improvement by Saturday morning.
“We hope both individuals have a full and quick recovery, and our thoughts are with them during this time,” Fish and Game Regional Supervisor Cyndi Wardlow said in a statement reported by Anchorage Daily News. “In this case, having bear spray with them in the field may have saved their lives.”
Both of the soldiers reportedly had and used bear spray during the attack.
The bear’s condition and whereabouts are currently unknown.
Up, up and away … that’s where most travel prices are going.
It’s true. Not only are our nation’s geopolitical thrusts in the Mideast affecting the cost of your fill-ups, every component of your trip from airfares to car rentals and hotel stays are subject to price hikes.
Imagine filling up a jetliner with jet fuel that’s doubled in price. It’s enough to melt your credit card, regardless of the number of points you get for every dollar spent!
Because the price of oil affects everything, higher prices are eating away at your travel budget in many ways.
Bag fees
There’s lots of press on this. All airlines are increasing their checked-bag fees because of the jump in fuel prices.
Back in 2009, Alaska Airlines instituted a $15 fee for the first checked bag and $25 for the second bag. At the time, there was no charge for the first bag and a second bag was $25.
Last week, Alaska Airlines, along with other major airlines, increased its fees to $45 for the first checked bag and $55 for the second bag. Delta Air Lines charges the same.
Even if the cost of oil comes down, I don’t expect bag fees will ever be reduced.
Travelers who live in Alaska are somewhat insulated from the new hikes because both Delta and Alaska Airlines offer two free checked bags, with conditions:
1. Alaska offers two free checked bags for travelers flying to or from Alaska who are enrolled in Club 49. This does not affect other flights on Alaska. Separately, ATMOS credit card holders can get a free checked bag. Also, elite members of the ATMOS scheme get one or two free checked bags systemwide.
2. Delta offers two free checked bags for travelers flying to or from Alaska who are SkyMiles members who live in Alaska. Again, this does not apply to other Delta flights. Separately, Delta American Express cardholders can get a free checked bag.
3. Elite-level travelers with the oneworld airline cartel, including Alaska Airlines, can get one or two checked bags on American, British Airways, Japan Airlines, Qantas or other oneworld carriers.
[Anchorage’s international airport rolls out self-driving wheelchairs]
Main Cabin vs. Basic Economy
The spread between the lowest available price, Basic Economy, and a more flexible ticket, Main Cabin, has increased. While the difference used to be $20-$30 each way when the Basic Economy scheme was introduced in 2018, the round-trip upcharge now can exceed $100.
For example, the lowest Basic fare to Portland is $337 round-trip on Alaska Airlines. The upcharge to Main Cabin, with full loyalty points, pre-assigned seats and more flexibility on changes and cancellations, is $447, a 33% upcharge.
This trend is not specifically attributable to the new Iran War. It’s just a cost that continues to rise.
New fees
I’m impressed at the creativity of airline people who dream up new fees. Here are some of my favorites from Alaska Airlines:
1. Phone reservations: $15
2. Partner award booking fee: $12.50
3. Pet travel fee: $100 in the cabin, $200 in the baggage compartment with a kennel
4. Left on board item return fee: $20
On Condor Airlines, operating the only nonstop service from Anchorage to Europe, travelers can choose from four different bundles in economy class. The least-expensive, Economy Zero, from $840 round-trip, features fees for travelers:
1. Carry-on bag fee, up to 8kg: $35; a small bag like a purse always is included for free
2. Checked bag: $75
3. Airport check-in: $30
All three of these fees are included in the next-highest fare bucket, Economy Classic, from $900 round-trip. It’s cheaper to buy the bundle than it is to buy the components a la carte. Seat assignments are additional, from $25 for economy.
Airfares on the rise
There are a few good deals available for travel to select West Coast/Intermountain destinations in May, including:
1. Anchorage-San Francisco on Alaska Airlines, from $307 round-trip. Fly May 15-28 only. Add $90 round-trip for Main cabin.
2. Anchorage-Los Angeles on Alaska Airlines, from $317 round-trip. May 15-25 only. Add $90 round-trip for Main.
3. Anchorage-Phoenix on United, Delta or Alaska, from $267-$287 round-trip. Fly May 8-June 9 only. Add $90-$100 for Main.
4. Anchorage-Denver $357 round-trip on Delta. Fly May 8-June 9 only. Add $90 round-trip for Main.
For travel to other destinations, or later in the summer, be prepared to pay more.
Flying to Hawaii? Alaska Air’s nonstop prices out at $706 round-trip between May 30 and June 6. Add $110 round-trip for Main.
Nonstop flights from Anchorage to Salt Lake City start at $669 round-trip with Delta on May 17. That’s $100 more than the cost for the same flights last month. Add $90 more for Main.
Hotel costs continue to rise, accompanied by pesky resort fees.
The Outrigger on the Beach in Waikiki is a very nice beachfront hotel. It’s not plush, or the nicest property. But it’s solid. The cost is $334 per night.
But there’s more: a $50 per night resort fee, plus a variety of taxes and charges, totaling $112.55 per night.
Down in Seattle, the Sound Hotel in the Belltown neighborhood is marketed by Hilton. The discounted rate for “Honors” members — it’s free to join — is $313.34 per night for a king room in late May. Taxes and fees add an extra $56.40 per night.
There’s no appreciable bump yet for hotel rates as a result of the oil price surge. Yet. But if these hotel rates seem high, they’re in line with hotel rates in Anchorage this summer. At the Sheraton in Anchorage in June, it’s $450 per night, plus $54 in taxes and fees, when booked at Expedia.
Car rentals are not cheap
My go-to site for car rentals is the Costco site, which compares major brands and automatically includes Costco discounts.
In Las Vegas, for a one-day rental in May, Budget charges $67 per day, which includes taxes and fees of $22.77. In Anchorage, the same kind of car, medium SUV, costs $92.97 with Alamo.
The biggest differences so far in car rental rates seems to be the bill you’ll pay when you fill up the tank before returning. There’s no appreciable jump in prices because of the new war.
When it comes to making travel arrangements for the spring and summer, it’s more risky making completely non-refundable arrangements.
I made the decision to purchase most of my summer travel plans in advance, but only after determining I would not need to change the dates. Particularly with airline tickets, it’s expensive to change your dates.
There’s lots of uncertainty regarding travel arrangements, particularly international travel. As fuel prices go up due to oil shortages, travel companies will look for ways to recoup the increased costs. In most cases, those higher costs will be borne by travelers.
ANCHORAGE, Alaska (KTUU) – The reopening of the Strait of Hormuz has led to a decrease in oil prices nationally, but Alaska’s senior senator said the state faces a different situation that could threaten rural communities.
“If you can’t produce power because you don’t have the diesel or you just can’t pay the prices, your little communities can collapse,” Sen. Lisa Murkowski, R-Alaska, said at a Friday press conference at the Arctic Encounter Summit in Anchorage.
The price of oil has been a double-edged sword for Alaska. On one hand, the increased price of North Slope oil brings more revenue to the state, but consumer prices can also rise.
North Slope oil prices were $106.36 a barrel on Thursday.
“This is a very precarious time,” Murkowski said. “Our state has enjoyed a bounty because we have benefited from the higher prices of oil that goes into our treasury, but it’s the Alaskans in … the off-road communities that are threatened to be hit most hard.”
See a spelling or grammar error? Report it to web@ktuu.com
Copyright 2026 KTUU. All rights reserved.
-
Michigan2 minutes agoFlood warnings continue around Cheboygan as river level stays high
-
Massachusetts8 minutes agoNew Bedford MS-13 Member, Illegal Alien Pleads Guilty to Role in Brutal Murders In Massachusetts, Virginia
-
Minnesota14 minutes agoVikings Have a Dubious Connection to the Dexter Lawrence Trade
-
Mississippi20 minutes agoMississippi College Baseball Wins Series vs. West Florida for First Time
-
Missouri26 minutes agoIt’s All Madsen In Missouri High Limit Tilt – SPEED SPORT
-
Montana32 minutes agoRural Highway Stalker In White Pickup With Dark Windows Terrifying Montana Women
-
Nebraska38 minutes agoScouting Future Saints: Nebraska Cornhuskers RB Emmett Johnson
-
Nevada44 minutes agoNevada high school football head coach steps down