(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor – Glenfarne Group announced on Monday, May 18th that it had secured a 30-year agreement with ConocoPhillips to supply gas for phase 1 of the Alaska LNG project. Phase 1 includes most of the pipeline (739 miles of 42”) to provide gas to Alaska residents. In addition to ConocoPhillips, Alaska LNG has agreements with Exxon Mobil, Hilcorp Alaska, and Pantheon Resources. No date was given regarding an FID on Phase 1. The driving factor behind Phase 1 is a looming natural gas shortage in Alaska. Declining production from Cook Inlet has led Alaska utilities to warn of steep price hikes if they have to start importing LNG. While that is a few years away, Hilcorp, Alaska’s leading supplier, just raised the price it charges for the electric utility from $7.89/mcf to $9.00/mcf and more increases scheduled over the next two years will bring the price to $11.75/mcf. Meanwhile, Alaska LNG negotiations continue in state government. They center on tax structure, transparency, local impacts and timing. Governor Dunleavy and developer Glenfarne push a low volumetric tax and broad exemptions to attract financing, while legislators and municipal leaders say that approach would sharply reduce state and local revenue and leave communities to shoulder construction burdens. Lawmakers are demanding detailed, current cost and financing data that developers have not publicly provided. Draft bills include deadlines (construction start by 2032; commercial operation by 2040) and carve-outs for spur lines, which fuel debate over revenue and equity for places like Fairbanks. As of May 19, 2026, negotiations are stalled. Glenfarne has not committed to build without tax relief.
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