Glenfarne, developer of the proposed 20 million-ton-per-year Alaska LNG project, released its first public cost estimates for the 800-mile pipeline and related infrastructure, placing the full project between $44.5 billion and $54.5 billion, Alaska Public Media reported on Thursday.
The company reportedly told Alaska state senators on Wednesday that the pipeline segment alone would cost $13.2 billion to $16.9 billion. Glenfarne Alaska head Adam Prestidge presented the figures to the Senate Finance Committee as lawmakers weigh tax incentives during a special session called by Gov. Mike Dunleavy.
Glenfarne owns 75% of the Alaska LNG project, and the State of Alaska, through the Alaska Gasline Development Corporation, owns 25%.
The estimates come amid deep skepticism in the Legislature, where members have resisted advancing tax breaks without clearer assurances on costs, state benefits, and long-term impacts on Alaska's strained finances. Just a day earlier, Glenfarne had declined to release internal estimates, citing concerns about supplier and customer negotiations, the news outlet said.
Lawmakers have also questioned the state Department of Revenue's projections that put total costs near $46 billion. Consulting firm Pegasus-Global warned legislators Tuesday that LNG megaprojects frequently exceed budgets, citing research indicating roughly two-thirds run over, with average overruns near 70%, the report said.
Prestidge said the company's figures were based on engineering studies, vendor bids, economic conditions, and experience with similar developments. After discussions with Senate Finance co-chairs, he said Glenfarne opted to disclose a range "to thread the needle of appropriate disclosure."
The company maintains that the state would not be responsible for cost overruns. Still, legislators voiced concern that higher costs could ultimately be passed on to Alaska consumers, since the project's first phase is expected to supply in-state markets.
Anchorage Sen. James Kaufman said the issue still affects ratepayers even if the developer bears direct financial risk.
Glenfarne also proposed adding language to the tax bill barring cost overruns from being passed to the state or regulated utility customers. Gov. Dunleavy has said he supports protections ensuring neither the state nor ratepayers are exposed.
The company said it has a price agreement with Alaskan utility Enstar for gas capped at $16 per thousand cubic feet, indexed to inflation. While potentially competitive with imports, that price remains above current local levels and would not ease until new demand comes online.
Glenfarne did not immediately respond to a request for comment by.
The special session runs through June 19, with Dunleavy signaling he will continue calling lawmakers back until a deal is reached.