JUNEAU, Alaska (KTUU) – Alaska’s lone congressman called on lawmakers not to become a ‘roadblock’ to the proposed LNG line during his annual address to the legislature, Tuesday. Lawmakers have spent months questioning whether the pipeline will benefit or harm the state.
“I am doing my job at the federal level,” Rep. Nick Begich, R-Alaska, said Tuesday. “But this requires partnership from you.”
Begich touted his first-term record, saying he’s delivering results for Alaska in Congress through passing federal legislation — five of the 11 bills he’s sponsored have been signed into law, with a sixth seemingly on the way. His focus wasn’t just on what he’s accomplished, but on what the state can accomplish in the future.
“We know that for Alaska, (if) we have a prosperous future, we need more development in order to make that happen,” Begich said.
‘Roadblock’ to the pipe dream
One of the several focuses of the speech was Begich’s advocacy for the proposed liquefied natural gas pipeline — a decades-long project proponents say has gained momentum from the federal government and the president. Lawmakers have been critical of the project, though, citing concerns about project finances and unclear asks.
“The federal path (for the gas line) has been largely cleared, but investors also need state-level clarity, fiscal predictability, and simplicity,” the congressman said. “Scrutinize it carefully. Model it thoroughly. But my request to you is not to become a roadblock.”
Walking out of the chamber, Begich told Alaska’s News Source he did not think lawmakers were being a roadblock and said on issues of the gas line, lawmakers should “speak with a unified voice, we have the opportunity to project confidence to the investor community that’s not here in-state.”
“We heard it from Senator Sullivan, we heard it from the folks that came here and talked to us about LNG,” House Minority Leader Rep. DeLena Johnson, R-Palmer, said after Begich ended his speech.
“It was really important that we focus on being positive about the gas line in the sense of not just being positive, but to be open to making the project go forward and [making sure] that we don’t have legislation in place that will stall that.”
For the past several months, lawmakers have criticized the major developer of the pipeline, Glenfarne, for not bringing forward more financial information about the project.
An energy consultant for the legislature, GaffneyCline, previously told lawmakers in the Legislative Budget and Audit Committee that legislation was essential, something Begich echoed — though he did not address the broader concerns lawmakers raised in that same meeting.
“I recognize that they’ve got certain restraints on what they can share,” Begich said after the speech. “I’d like to see more information shared. I’d like to see more of the economics of the project shared so that we can understand what the full potential is and what’s on the table. I believe that’s going to come with time.”
In a list of recommendations he would like to see from the legislature, he listed “Alaska LNG-enabling legislation.”
“The federal path is clear, but the state side also matters,” he told lawmakers. “The state’s own consultants (GaffneyCline) have said it plainly. Enabling legislation is essential. Investors need fiscal stability, clarity on property tax treatment, a stable production tax, and royalty structure, and a state permitting process that matches federal speed.”
Fiscal stability is essentially a promise that if the state changes its tax or regulatory policies after the deal is made, the state makes up financial losses to investors, according to GaffneyCline, the energy consulting firm that presented to lawmakers.
The governor has floated the introduction of a property tax bill targeted at gas line needs, but more than a month deep into the session it still has not arrived.
“I don’t even understand what that means, LNG-enabling legislation,” Sen. Bill Wielechowski, D-Anchorage, told Alaska’s News Source after the speech. “We have legislation on the books that defines what should happen … Glenfarne now is apparently saying that doesn’t apply to this. I don’t know what legislation they think they need to go forward in this project.”
Alaska’s News Source reached out to Glenfarne multiple times for comment Tuesday. As of publication, a response had not been returned.
Glenfarne has repeatedly said they are transparent with the legislature.
Glenfarne CEO and Founder Brendan Duval told Alaska’s News Source during an online press conference in January that conversations with lawmakers have been “extremely constructive”, and he did not see frustration from delays and unknowns.
“Even if we are three weeks behind on our forecast date, we’re a year ahead of where other entities would be,” he said.
The skepticism follows repeated delays on a final investment decision, the last step in determining whether the gas line will move forward or not, which lawmakers say they expect by the end of March. Lawmakers have heard similar promises before.
“They told us last year that they were going to be at FID by the end of last year, end of December. That didn’t happen,” Wielechowski said. “They told us then it would be by the beginning of session. That didn’t happen. Then they filed with FERC and said it would be by February 6th. That didn’t happen.
“Look, we all want this project to happen. We all want it to go forward. But if they need enabling legislation, we need to understand what that means.”
The message echoed the one Sen. Dan Sullivan, R-Alaska, made in his own address to the legislature on Feb. 18.
Touting an Alaska comeback, Sen. Dan Sullivan, R, leaned on his record to the Alaska State Legislature during his annual speech Wednesday.
“One of these things I try to do in this job is cooperate with members of the legislature, but not be too prescriptive,” Sullivan said after asking the legislature to “join me in doing everything in your power to make this (gas line) dream a reality.”
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