Opinion: Before Alaska gives away the gas line farm, show us the contracts

No one envies the Alaska Legislature being called back into a second special session on the proposed liquefied natural gas pipeline. One wonders if legislators are being held hostage to the governor’s predetermined decision. While the benefits of an LNG project are easily imagined, the economic risks of the Alaska LNG project must not be ignored.

Alaskans are not assured that Glenfarne, the company that was granted 75% of this project in an undisclosed document, won’t just flip it — sell it — to another entity after it gains billions of dollars in concessions from Alaska. Why the sudden change by Glenfarne and the Alaska Gasline Development Corporation from saying no legislative action was needed to the recent assertion that billions of dollars in property tax reductions are now necessary? It is without question that local municipalities will collectively incur hundreds of millions of dollars in direct impact costs.

Will Alaska give away another resource “farm” again? How would Alaska respond if the LNG project stalls and our resource continues to be a stranded asset? No purchaser has signed on the dotted line to actually buy fixed quantities of our gas. Are prospective purchasers interested? Yes. Have they signed binding contracts? No.

Russia has natural gas pipelines flowing into China. Russia has substantial volume to sell, having lost its natural gas sales to Europe after invading Ukraine. China currently produces 60% of its oil and natural gas needs by fracking its resources in western China. What would keep the Chinese from selling their or Russian natural gas to Alaska’s potential customers in Asia?

Natural gas prices have remained steady, which says there is plenty of it. Can Alaska’s project, including costly export facilities, be built at a cost that allows it to compete?

Legislators, please respond. But don’t sell out the interests of Alaskans. Glenfarne’s and AGDC’s lack of truthful answers raises many red flags. The correct decision is to let Glenfarne pay for its project. If it can’t or won’t, it isn’t economic.

Patrice Lee is a 49 year resident of Alaska, a retired math and science teacher, and a former elected member of the Interior Gas Utility Board of Directors. She lives in Fairbanks.

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