“given our baseline assumptions of the $46.2 billion capital cost and the $1.50 per 1,000 cubic feet purchase price, we have that $9.07 break-even price under current law, the $8.48 under the governor's version of the bill, and the $8.96 per 1,000 cubic feet under the version before the committee.”
But we can look at what, given our baseline assumptions of the $46.2 billion capital cost and the $1.50 per 1,000 cubic feet purchase price, we have that $9.07 break-even price under current law, the $8.48 under the governor's version of the bill, and the $8.96 per 1,000 cubic feet under the version before the committee. And we could look at what would those breakeven prices be with the different gas purchase prices at the upstream and then with different capital costs.
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.
