
Speaker B
51:47 - 52:32
"This would result in a breakeven LNG price into the global market of $10.69 per thousand cubic feet. That compares to $9.07 per thousand cubic feet under our baseline assumptions. So a move of about $1.60 just from increasing that capital cost assumption really highlights the importance of of that capital cost assumption."
“This would result in a breakeven LNG price into the global market of $10.69 per thousand cubic feet. That compares to $9.07 per thousand cubic feet under our baseline assumptions. So a move of about $1.60 just from increasing that capital cost assumption really highlights the importance of of that capital cost assumption.”
So this scenario really looks just at that capital expenditure change and what the impacts of that are. So slide 19 shows the current tax law analysis with a $60 billion capital expenditure. This would result in a breakeven LNG price into the global market of $10.69 per thousand cubic feet. That compares to $9.07 per thousand cubic feet under our baseline assumptions. So a move of about $1.60 just from increasing that capital cost assumption really highlights the importance of of that capital cost assumption.
Department of Revenue modeling shows that if the Alaska LNG project costs $60 billion instead of the baseline $46.2 billion, the price needed to break even in global markets would jump by $1.60 per thousand cubic feet, significantly affecting project viability and the state's fiscal analysis of competing tax proposals.

Alaska Department of Revenue modeling shows the Alaska LNG project could cost the state $16.2 billion through 2062 under worst-case production scenarios combining Prudhoe Bay oil losses with Point Thompson underperformance at $100 per barrel oil prices.
