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Opinion: The pipeline that stole Christmas: Why Alaska can’t afford this costly project

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Opinion: The pipeline that stole Christmas: Why Alaska can’t afford this costly project


Gov. Mike Dunleavy, left, and Brendan Duval, CEO and founder of Glenfarne Group LLC, talk about construction of an Alaska LNG pipeline during the Alaska Sustainable Energy Conference at the Dena’ina Center in Anchorage on Thursday, June 5, 2025. (Bill Roth / ADN)

Too many residents, business owners and politicians of Southcentral Alaska — we’re talking the state’s population center of Anchorage, the Mat-Su and Kenai Peninsula — are all agog in anticipation that a multibillion-dollar North Slope natural gas pipeline will save them from unaffordable heating and electric bills.

It’s the time of year for holiday dreams — a warm tradition like Hallmark movies, grandma’s cookies and the Budweiser Clydesdales. But the wintry cold truth about this dream is that there will be no pipeline under the tree — just bits of tinsel left over from premature and misleading celebrations.

The megaproject is too costly and too risky in a world that has plenty of easier and cheaper gas to sell. It has uncertain construction costs, with public estimates ranging from roughly $40 to $44 billion; no binding long-term customer contracts to provide collateral for loans; no binding financial commitments from investors; and actually no gas under firm contract to sell. Other than that, it’s a great holiday package, with the lead promoter publicly talking of delivering a construction decision before the holiday season is over.

Yet many still want to believe it’s possible, preferring to perpetuate the warm holiday glow of bountiful gas, plentiful jobs and wishful thinking of billions of dollars flowing into the state treasury.

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But while the notion of a pipeline delivering North Slope gas to Southcentral boilers, furnaces and power plants is consuming much of the air in the convention hall of big ideas, Southcentral utilities face the real prospect of running short of gas before the end of the decade, as Cook Inlet production declines.

Which means those utilities would need to import gas — supercooled into a liquid and delivered by tanker from Canada or elsewhere. Which means spending money to build an import facility. Which means charging ratepayers for the investment.

That’s the immediate problem, not waiting for a pipeline to come to the rescue.

Southcentral’s largest electric utility, Chugach Electric Association, is negotiating with Harvest Midstream, an affiliate of Cook Inlet oil and gas producer Hilcorp, which plans to restore operations at the unused gas export terminal in Nikiski and turn it into an import hub. It’s a low-cost, low-risk plan — with federal authorization in hand — to use the existing dock and storage tanks to help keep the state’s population center warm and well-lit.

However, the same project developer that wants to build the North Slope project, a company named Glenfarne, thinks it has a better backup answer before its pipeline arrives. It proposes to spend hundreds of millions of dollars to build a gas import terminal from scratch. Southcentral gas utility ENSTAR is in on the plan.

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The Glenfarne/ENSTAR project not only lacks approval from the Federal Energy Regulatory Commission, it hasn’t even applied for authorization. Glenfarne has talked of spending tens of millions of dollars just getting to a construction decision. Then more spending, and years, before it could start importing gas.

All of the Southcentral utilities need to get their collective acts together and use the lowest-cost, fastest-to-develop, most certain option to ensure their customers have the gas they need. That is repurposing the existing export plant into an import terminal.

Building an entirely new facility for a small customer base is as wasteful as spending more public money on an unaffordable gas pipeline.

Any bad spending decisions by the utilities could fall on ratepayers to cover, or the state to bail out. Alaska has made a lot of poor decisions about energy over the years. We don’t need one more.

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 the publisher of the Wrangell Sentinel weekly newspaper.

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Alaska

Alaska Air National Guard rescues injured snowmachiner near Cooper Landing

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Alaska Air National Guard rescues injured snowmachiner near Cooper Landing


 

An Alaska Air National Guard HH-60W Jolly Green II helicopter, assigned to the 210th Rescue Squadron, 176th Wing, returns to Joint Base Elmendorf-Richardson, Alaska, after conducting a rescue mission for an injured snowmachiner, Feb. 21, 2026. The mission marked the first time the AKANG used the HH-60W for a rescue. (U.S. Air National Guard photo by Staff Sgt. Joseph Moon)

Alaska Air National Guard personnel conducted a rescue mission Saturday, Feb. 21, after receiving a request for assistance from the Alaska State Troopers through the Alaska Rescue Coordination Center.

The mission was initiated to recover an injured snowmachiner in the Cooper Landing area, approximately 60 air miles south of Joint Base Elmendorf-Richardson. The Alaska Air National Guard accepted the mission, located the individual, and transported them to Providence Alaska Medical Center in Anchorage for further medical care.

The mission marked the first search and rescue operation conducted by the 210th Rescue Squadron using the HH-60W Jolly Green II, the Air Force’s newest combat rescue helicopter, which is replacing the older HH-60G Pave Hawk. Guardian Angels assigned to the 212th Rescue Squadron were also aboard the aircraft and assisted in the recovery of the injured individual.

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Good Samaritans, who were on the ground at the accident site, deployed a signal flare, that helped the helicopter crew visually locate the injured individual in the heavily wooded area.
Due to the mountainous terrain, dense tree cover, and deep snow in the area, the helicopter was unable to land near the patient. The aircrew conducted a hoist insertion and extraction of the Guardian Angels and the injured snowmachiner. The patient was extracted using a rescue strop and hoisted into the aircraft.

The Alaska Air National Guard routinely conducts search and rescue operations across the state in support of civil authorities, providing life-saving assistance in some of the most remote and challenging environments in the world.



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Alaska House advances bill to boost free legal aid for vulnerable Alaskans

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Alaska House advances bill to boost free legal aid for vulnerable Alaskans





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Marten visits are a glimpse into mystery

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Marten visits are a glimpse into mystery


A trapper fresh out of the Cosna River country in Interior Alaska said he can’t believe how many martens he had caught in a small area so far this winter.

Friends are talking about the house-cat size creatures visiting their wood piles and porches. Could this be a boom in the number of these handsome woodland creatures?

Since the late 1970s, the University of Alaska Fairbanks’ Geophysical Institute has provided this column free in cooperation with the UAF research community. Ned Rozell is a science writer for the Geophysical Institute. Portions of this story appeared in 2000.



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