
Dan Stickel
107:44 - 108:31
"we're looking at the project capital cost and the upstream gas price and how that relates to cumulative state revenues over life of project. And we— and again, this assumes that the full AK LNG project goes forward under any of these tax regimes."
“we're looking at the project capital cost and the upstream gas price and how that relates to cumulative state revenues over life of project. And we— and again, this assumes that the full AK LNG project goes forward under any of these tax regimes.”
Slide 7, we were asked to analyze the relationship between upstream gas price and state revenues. And so what we've done for this is we've presented a sensitivity matrix similar to the matrices that I presented earlier. But in this case, we're looking at the project capital cost and the upstream gas price and how that relates to cumulative state revenues over life of project. And we— and again, this assumes that the full AK LNG project goes forward under any of these tax regimes. And what we see here is obviously higher state revenues with higher gas prices because that would increase production tax and royalty from the upstream.
The Alaska LNG project would struggle to compete in global markets even under the governor's proposed tax relief, with breakeven prices at the high end of current futures markets, according to state modeling presented to the House Finance Committee on Thursday.

The Alaska House Finance Committee heard Thursday that the governor's version of HB 381 would reduce municipal property tax revenue from the Alaska LNG project by over $13 billion compared to current law, while the House Resources version would actually increase municipal revenue by retaining property tax on the gas treatment plant and LNG facility.
