Skip to main content
0:48

Dan Stickel

71:02 - 71:50

“you can see that the replacing the property tax with the alternative volumetric tax decreases that cost of supply by about $0.50 per thousand cubic feet. If capital costs were to come in 10% below our assumption, it would have a similar impact. And we can see here that if capital costs were to come in significantly higher than what we're assuming, that would have really the largest impact of any of these variables on the economics of the project”
Community
Alaska News
Captured at

From the transcript

How do some select assumptions sensitivities impact that cost of supply? And you can see that the replacing the property tax with the alternative volumetric tax decreases that cost of supply by about $0.50 per thousand cubic feet. If capital costs were to come in 10% below our assumption, it would have a similar impact. And we can see here that if capital costs were to come in significantly higher than what we're assuming, that would have really the largest impact of any of these variables on the economics of the project and what the delivered cost of supply would be. So that is a very important assumption.

Related Coverage

Senate Finance hears $18 billion revenue trade-off for Alaska LNG tax break

Senate Finance heard the proposed Alaska LNG tax break would cut state and municipal revenues by $18 billion over 30 years, but the estimate rests on construction costs that may range from $45 billion to $90 billion.

Cover image for article: Senate Finance hears $18 billion revenue trade-off for Alaska LNG tax break