
Speaker B
16:42 - 17:39
"Under these alternative project assumptions, the breakeven price into the global market to get that 10% return for the investors would be $9.63 per thousand cubic feet. That compares to $8.48 per thousand cubic feet under our baseline analysis... the very LNG breakeven price would be $9.69 per thousand cubic feet, comparing to $8.54 per thousand cubic feet under our baseline assumptions. And so across the board, these, these alternative assumptions increase the required sales price of gas into the global market by a little over $1 per 1,000 cubic feet."
“Under these alternative project assumptions, the breakeven price into the global market to get that 10% return for the investors would be $9.63 per thousand cubic feet. That compares to $8.48 per thousand cubic feet under our baseline analysis... the very LNG breakeven price would be $9.69 per thousand cubic feet, comparing to $8.54 per thousand cubic feet under our baseline assumptions. And so across the board, these, these alternative assumptions increase the required sales price of gas into the global market by a little over $1 per 1,000 cubic feet.”
Slide 6 is the similar slide under Senate Bill 280 as introduced by the Governor. Under these alternative project assumptions, the breakeven price into the global market to get that 10% return for the investors would be $9.63 per thousand cubic feet. That compares to $8.48 per thousand cubic feet under our baseline analysis. And then on slide 7, which is the bill before the committee, the very LNG breakeven price would be $9.69 per thousand cubic feet, comparing to $8.54 per thousand cubic feet under our baseline assumptions. And so across the board, these, these alternative assumptions increase the required sales price of gas into the global market by a little over $1 per 1,000 cubic feet.
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.
