Cook Inlet gas keeps falling with no Alaska gasline tax deal in place

Cook Inlet gas production keeps declining with no gasline tax deal in place. The Alaska State House killed House Bill 381 on a 19-19 tie. The bill set tax terms for the 807-mile Alaska LNG project, though Glenfarne Group opposed parts of that structure. Anchorage Mayor Suzanne LaFrance, Mat-Su Mayor Edna DeVries, Enstar President John Sims and Matanuska Electric Association CEO Tony Izzo warned July 28 that the decline threatens Southcentral heating, power and public services.

Sims told a Commonwealth North forum June 5 that output "dropped from about 350 million cubic feet a day down to right around 200 million a day," against a winter peak near 320 million. Enstar's firm Hilcorp contract expires in 2033. Separately, Glenfarne and Enstar signed an exclusivity agreement in December 2024, made public in January 2025.

The conference draft, cast as a compromise, would swap the 2% oil and gas property tax for a volumetric throughput tax while adding a Fairbanks spur and community benefits. The Senate Republican Caucus says Phase One would offset the decline at $16 per million cubic feet, avoiding costlier imports. Industry advocate Rebecca Logan cites 500 businesses and individuals backing it.

Senate Resources Chair Cathy Giessel said the goal is "to get North Slope gas to Alaska consumers at the lowest possible cost. To protect Alaska consumers from project cost overruns and tax giveaways."