From the transcript

Through the Chair, Representative Hannon, the cost estimate level for the gas treatment plant and the liquefaction are currently a Class 4. And so, as I started off, you know, we were at $44 billion, we reduced it to $38 billion in 2020. And what AGDC did is we had engaged with Fluor as essentially our owner's engineer over the years, and we asked Fluor to keep up with the cost and we would recast that cost estimate, meaning we would go out, we'd get price quotes, uh, to make sure that we were up to date as best we could. So we did that in 2022, we did that in 2024, and then what you've most recently received was a CPI index update from the Department of Revenue that took us up to that $46 billion level. So we feel that the work that has been done up to 2026, we kept current with the industry costs, meaning we wanted to make sure that we had what was current, that contractors were bidding on, that pipe suppliers were providing, what process equipment manufacturers were costing, to be able to make sure that we had something that was viable for— to entice investors and entice the market to come into the project.

Related Coverage

Wednesday, May 27, 2026Wed, May 27, 2026

AGDC tells House Finance that Alaska property tax is 10 times higher than competing LNG projects

Alaska Gasline Development Corporation testified to the House Finance Committee that Alaska's property tax structure would impose costs roughly 10 times higher than competing LNG projects, with potential annual taxes exceeding $800 million compared to $50 million at the next-highest jurisdiction. AGDC officials said property tax restructuring has been identified as a critical economic lever since 2020, though they acknowledged waiting until late March 2026 to bring legislation forward was a timing mistake.

by Bill AlaskaNews1mo ago3 min readAI

Alaska