Alaska’s Gasline Project – A Transformative Opportunity We Must Seize

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By MIA COSTELLO

For decades, Alaskans have heard about gasline projects that never materialized. But this time is different. As the president of Glenfarne Alaska LNG shared at a recent Alaska Gasline Caucus meeting, 90% of the right-of-ways are secured and permits are in place. Alaska’s natural gas on the North Slope is not tied to a specific price index, giving LNG producers flexibility to sell at a fixed price or link to global oil indices. This adaptability, combined with our existing pipeline infrastructure and strategic geographic position—saving two weeks in transportation time—positions Alaska as a competitive player in the global energy market. Add to this the strong support from the current federal administration, which is actively championing this project, and the stars are aligning for success.

Time to Prepare

The gasline is no longer a distant dream. It is real, it is advancing, and we need to prepare.

With the project approaching its final investment decision—a critical milestone that will greenlight construction—this is further along than any gas line project in Alaska’s history, and the implications are staggering.

As co-founder of the bipartisan, bicameral Alaska Gasline Caucus, alongside Rep. George Rauscher, I am energized by the progress we have seen and the momentum building around this project. The gasline will touch every corner of our state, impacting every state department and community. From infrastructure and transportation to education and housing, the ripple effects will be profound. The project is expected to bring thousands of jobs, many of which can and should go to Alaskans. To ensure this, we must prioritize workforce development and prepare our residents—especially our young people—for the skilled positions this project will demand.

At the caucus, we heard from leadership at the University of Alaska, including the vice chancellor of UAF, the chancellor of UAA, and deans from community and technical colleges. They outlined the opportunities and challenges ahead, emphasizing the need to expand training programs to meet the demands of this project. The Department of Labor and Workforce Development, along with the Alaska Workforce Investment Board, also shared their efforts to ready our workforce. But with university programs already at capacity, we face a clear challenge: we must scale up our training infrastructure to ensure Alaskans are equipped for these high-demand roles.

Practical Solutions

One potential solution is the Power Alaska’s Workforce Tax Credit Act, which I sponsored to encourage private sector funding for career and technical education infrastructure, instruction and student housing to expand training opportunities more efficiently than through public funding alone, providing students access to facilities not otherwise available.

The bill, House Bill 219, allows private industry to claim a credit against state taxes equal to qualifying expenditures related to workforce training. Qualifying expenditures include constructing or maintaining CTE fabrication labs, constructing or maintaining CTE infrastructure, administering CTE programs, paying instructors or staff, developing CTE curriculum, and building or maintaining housing/dormitories for CTE students.

At a recent contractor’s fair hosted by Glenfarne, over 200 participants showcased a depth of talent and experience in our state. By prioritizing Alaska businesses for contracts, we can keep the economic benefits local, supporting communities from Anchorage to the smallest villages.

As Department of Labor Commissioner Cathy Munoz noted, a state apprenticeship program could streamline workforce development, bypassing federal red tape. These are the kinds of practical solutions the Legislature must explore in partnership with the Dunleavy administration.

It Takes All of Us

When the trans-Alaska oil pipeline was built, it transformed our state, sparking economic growth that touched every community. The gasline has the potential to do the same, but only if we act now to prepare. This is a chance to pivot from being a high-cost energy state to a global energy leader. It’s a chance to create lasting opportunities for our youth, strengthen our businesses and secure Alaska’s economic future.

Let’s not let this moment pass us by. It is time for all of us—legislators, educators, businesses and communities—to come together and make it a success. Stay tuned for updates as the Gasline Caucus continues its work, and let’s seize this opportunity to build a stronger, more prosperous Alaska.

Rep. Mia Costello is the House Minority Leader and represents District 15-Anchorage.

29 COMMENTS

  1. A gas pipeline, the economics notwithstanding, will face all the environmental zealotry as did the TAPS. It does not matter that all the doom and gloom predictions of threats to wildlife because of TAPS never happened, the same dire predictions will get rolled out again by the environmentalists. It is good to remember that TAPS was a tie vote in the Senate only passing when Spiro Agnew cast the deciding vote. We can expect similar opposition to a gas pipeline.

  2. This all does sound excellent and we need to make haste. I am supportive of HB219 and feel strongly our technical education in our state has been lacking and could use some serious revival. So many skilled technicians are also aging out and a new generation needs to be ready to take their place. Thank you representatives Costello and Rauscher for all of your hard work with this.

  3. It would make more sense to load natural gas on tankers off the North Slope and use new ice breakers to clear the way of ice., former Lt. Governor Meade Treadwells idea. That would save a lot of money.

    • Not feasible- costs would not be recovered as this idea has been evaluated many times. The infrastructure alone would be more than the pipeline. BP and Conoco did a joint assessment on this about 20 years ago. The easement using the existing pipeline makes it easier to add a smaller pipeline to bring it to market and service Alaskans.

      • Dan,
        Let me know when the majors (who own a goodly amount of the resource currently being used to keep crude reservoir pressure up),sign on.The chance to make almost any meaningful royalties for the state is practically nonexistent.
        And also when theres a pipe contract signed.Got tariffs anyone?
        Ever heard of Kittamat?

  4. I love the idea of Power Alaska’s Workforce Tax Credit Act. I received some of the best education in my life with on-the-job training in this state, and I’ve been to college here as well. Learning on the job is the best, imho. Providing incentives for it is an excellent way to get Alaskans educated and able to take these jobs.

    • Yeah, why are the North Slope producers silent?
      You’d think they would be the biggest proponent of a pipeline.
      Crickets.

      That’s what I find disturbing.

      • No it competes with the oil . They are not on board and won’t be . They’ve never been a proponent of gas production .

        The current oil producers will not promote a gasline . This has been the issue for 50 years . It’s literally held Ak back . Fairbanks is one of the largest cities in the world that not connected to a gas resource by pipeline . Just because of the ambient temperatures , Fairbanks will consume as much gas as south central with a third of the population . Usabelli’s won’t sell much coal after that and the refinery’s in Fbks will not sell much home heating fuel .

    • Wrong! The end users of Alaska natural gas hold the key. Without a long-term market set in place to purchase and receive the gas, no pipeline will be built. Period.

    • There is nothing special about Alaska natural gas. It’s a fungible product that can be purchased anywhere on the globe…….and for much cheaper than in Alaska. This pipeline will not be built anytime soon…..and probably never.

      • Not true . The Japanese and South Koreans are looking for long term gas contracts and it’s part of the tariff talks and the pipe will be rolled in Japan . All $26B worth of steel .

  5. If only we had entities already set up to run apprenticeship and training programs without needing more tax cuts in a state that’s already struggling to balance its budget—or without forcing apprentices and trainees into debt. Wait a minute, we do! Every building trades union already has that infrastructure in place. Let’s get our fiscal house in order before cutting the limited funds the state receives under the guise of “needed training facilities” when those facilities already exist.

  6. one of the biggest keys to construction is in the process of being destroyed.
    the rail road dock in Seward was key to the oil pipeline, so what port can handle the gas line.
    the answer is there isn’t one left.

  7. Alaska leadership is wise to focus on the Gas Pipeline, roads to resources, and regulators that offer leases, units, and drilling permits at much less harsh terms and high costs.

    Investors are not flocking to Alaska but to other oil and gas places that are not as difficult as Alaska regulators. Alaska needs to say yes more often to smaller and bigger oil and gas investors instead of no.

    In 1995, Alaska tied for first place in oil production with Texas.

    Now, Alaska is fifth, and Texas is number one with seven million barrels of oil per Day, and Alaska is at 470,000 BOPD. This can be changed by saying yes more often to investors like Texas and other places do.

        • You’re referring to the recent Sockeye discovery, which has about 25 feet of net pay. The reservoir at Prudhoe Bay has net pay thicknesses of hundreds of feet. It’s not even a close comparison.

  8. In spite of having the majority of seats in the House, you have managed to lose the House to a minority of Democrats. Again. You can’t even run your own House competently. What makes you think you can run a megaproject competently?

    As Rex Tillerson, CEO of ExxonMobil said in 2015 when the state cratered the last gas line project, ‘Alaska is their own worst enemy’ when it comes to projects like this. This will ring true yet again.

  9. Pretend that you can influence things all you want, Alaskan politicians, but it’s economics, markets, and investors who will make all the decisions. You are all basically powerless to do anything other than hype, hope, and pray.

  10. Mia, you want to enlarge the university?

    How about just cut one third of the existing cost for the university and use those funds for scholarships to outside trade schools?

  11. Increasing the nest of vipers known as UA( doesn’t matter which campus) should be the very last thing on the agenda. Doing so is effectively suicide for the states finances. The University system is A vanity project. Consumes vast resources and only perpetuates itself, returning bupkisto the public

  12. I suspect we won’t have real investment until we get through mid term elections and possibly even the next presidential election, confirming that republicans can hold for a few years. I don’t think major investors will want to risk a situation similar to Keystone.

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