ANCHORAGE, Alaska (KTUU) – A proposed 739-mile pipeline could cost Anchorage up to $173 million, according to the LaFrance administration.
The Alaska Liquefied Natural Gas (LNG) project is being proposed to be set up 20 miles outside of the Municipality of Anchorage and would be responsible for transporting gas from the North Slope.
However, due to the project being outside of the municipality, the city said it would receive no direct tax revenues from the gas line.
“I am really excited about the economic benefits that a gas line would provide. As mayor, I am being proactive in looking at how it would impact Anchorage,” Mayor Suzanne LaFrance said.
Due to Anchorage being a “hub” near the project, the LaFrance administration said it would cost them millions of dollars in extra public service costs. The city would need to be prepared to welcome around 10,000 people to the city, resulting in a heightened demand for housing and emergency response services, LaFrance said.
The Anchorage Fire Department has also previously told Alaska’s News Source that the department has seen a 50 to 60% call volume increase in the past decade, as staff and equipment numbers remain the same.
“And so, it’s my job to ensure that we’re able to provide services to meet the needs of those residents. And that’s why it’s critical that Anchorage is included in any impact funding and has a seat at the table,” LaFrance said.
The news of the proposed gas line comes at a time when Anchorage is already facing housing struggles and what LaFrance described as a “fiscal cliff” last fall.
“Definitely ensuring that we’ve got a stable fiscal future is top of mind to us,” LaFrance said. “We have a tax cap, and it lacks flexibility. It works over the long term, but in the short term where we see like an immediate impact and a need for funding of those services, it takes some time for the tax cap to catch up to additional population and also to adjust for the housing that we need.”
The impact funding is tied to HB 381, a bill that entirely focuses on property tax exemptions for this pipeline, which is currently being debated in the Alaska Legislature.
“The Municipality supports the approach in HB 381 provide a community impact fund as well as AVT revenue sharing on a per capita basis. Impact funds would help us prepare for increased service and housing demand. Revenue sharing would close the gap between our local tax revenues and the delivery of services,” the LaFrance administration said via a statement Monday.
According to Jeff Turner, the spokesperson for Gov. Mike Dunleavy, the governor is in favor of impact funding to assist local governments.
A spokesperson for Representative Neal Foster, who is the co-chair for the House Finance Committee, told Alaska’s News Source, “The issue of community impact funding can determined in the amendment process. The Committee plans on setting an amendment deadline today, and should be considering amendments next week.”
Despite the short-term costs, LaFrance said the project would ultimately bring economic growth to Anchorage.
“We all need a project like this right now,” LaFrance said. “Alaska is losing population and, you know, we need to have the stability of good jobs. And something like the gas line could really help to reinvigorate and provide that stability to our state and other communities like Anchorage.”
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