Alaska Resource Review is the official magazine of the RDC, published four times a year to inform Alaskans and others about the importance of Alaska’s resource industries as well as advocate for issues critical to the success of those industries. Resource Review reaches more than 20,000 readers important to these industries, in print, at RDC events and online via digital, social and email media.
ALASKA RESOURCE REVIEW VOLUME 3 | ISSUE 2 | JUNE 2026
STRONG ALASKA ... STRONG AMERICA Major investment flowing into projects signals importance of our industries
INSIDE THIS ISSUE n Pikka Project Celebrates Historic First Oil Milestone n EPA's David Fotouhi to Keynote Membership Luncheon n Ready, Safe, Go: Why Safety Must Be a Summer Priority n Alaska on the Hill Connects RDC With Washington, D.C. n Alaska Seafood Industry Sets Standard With Innovation Magazine of the Resource Development Council for Alaska | www.AKRDC.org
INDEX
VOLUME 2 | ISSUE 2 | SPRING 2025
VOLUME 3 | ISSUE 2 | JUNE 2026
PAGE 12 FIRST OIL AT PIKKA PROJECT ADDS TO SLOPE MOMENTUM Phase 1 of Pikka is underway with the first oil flowing May 17. See more about the updated production forecast for the project, as well as other developments on the North Slope that are projected to add to Alaska's burgeoning oil and gas output. PAGE 25 ALASKA FISHING INDUSTRY FOCUSES ON THE FUTURE Alaska is frequently cited as a global model for responsible fisheries management, largely because of the transparency and scientific rigor built into the system. See more about how the commercial fishing industry continues to remain at the forefront of fisheries innovation. PAGE 32 LUMBER GRADING PROGRAM A VALUABLE ALASKA RESOURCE The Alaska Lumber Grading Program has proven its value as it has worked to train and certify small and medium-scale sawmill operators to produce local lumber. See more about why keeping lumber production in Alaska helps curb supply and cost issues across the state.
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ALASKA RESOURCE REVIEW is published in partnership with the Resource Development Council for Alaska, Inc. by Fireweed Strategies LLC, 4849 Potter Crest Circle, Anchorage, AK 99516. For advertising information and story inquiries, email Lee.Leschper@FireweedStrategies.com. ALASKA RESOURCE REVIEW is mailed at no charge throughout Alaska. To subscribe, email Admin@FireweedStrategies.com. Publisher: Lee Leschper | Editor: Tim Bradner | Production, Design: Will Leschper | Contributing Photographer: Judy Patrick
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ALASKA RESOURCE REVIEW JUNE 2026
VOLUME 3 | ISSUE 2 | JUNE 2026
"Alaska has long demonstrated that economic development and environmental stewardship are not competing priorities. Our state works best when we pursue both together." — Connor Hajdukovich, Executive Director, RDC
2026 State Legislative Priorities The Resource Development Council of Alaska (RDC) is a statewide business association comprised of individuals and companies from Alaska’s fishing, timber/forest products, mining, oil and gas, and tourism industries. RDC’s membership includes Alaska Native corporations, local communities, organized labor, and industry support firms. RDC’s purpose is to encourage a strong, diversified private sector in Alaska and expand the state’s economic base through the responsible development of our natural resources.
THANK YOU FOR HELPING THE RDC ADVOCATE FOR ALASKA
Advocate and provide support for policies and legislation that encourage responsible resource development.
Stable, long-term fiscal plan •
Encourage the legislature to create a stable state budget over the long term using measured fiscal reforms and utilization of Permanent Fund earnings tied to a rules-based framework. This budgetary planning should: o Include a meaningful spending cap that promotes fiscal discipline and predictability; o Adhere to the 5 percent POMV draw to protect the long-term sustainability of the Permanent Fund; o Maintain adequate funding for essential state functions so Alaskans continue to have reliable access to core government services; and o Rely on existing revenue sources and efficiencies rather than imposing new taxes. • Advocate to diversify and expand the economy in Alaska, by reducing the budget deficit to encourage long- term investment by the private sector. • Advocate for the utilization of federal funds to efficiently advance key statewide infrastructure projects to support resource development. *UGF includes: Operating budget, capital budget, statewide obligations, but not the deferral of liabilities. A robust private sector and a stable permitting process • Advocate for tax policy and regulatory stability that enhance the State of Alaska’s competitiveness for all industries to attract new investment and grow the economy. • Encourage elected officials and state agencies to defend and promote Alaska’s effective and rigorous regulatory process. • Support state assumption of primacy over federal permitting programs to bring stability, efficiency and certainty to support resource development. • Support and advocate for state and local efforts to lift federal public lands orders, such as PLO 5150, and regulations limiting and/or restricting reasonable access, development and delivery of state resources. Initiative reform • Advocate for changes to the initiative process that would nullify a ballot initiative if a court finds any segment of the initiative to be unconstitutional. • Advocate for changes to the initiative process that create more transparency and better public policy in a comprehensive and balanced manner, to equally benefit both the voters and the legislative process.
D EAR MEMBERS AND SUPPORTERS: If you are reading this at our Annual Membership Luncheon, thank you for joining us and for your continued support of RDC. This event is one of the best reminders each year of what makes our organization unique. Bringing together Alaska’s diverse indus- tries, communities and leaders in one room reinforces the power of collabo- ration and the shared commitment to responsible development that has defined RDC for more than 50 years. At this year’s luncheon, we are high- lighting how we do it best in Alaska, particularly as it relates to environmen- tal stewardship and cooperation with government and industry partners. We are pleased to welcome Deputy Admin- istrator of the Environmental Protection Agency David Fotouhi to discuss envi- ronmental policy and the importance of cooperation between government and industry partners. Alaska has long demonstrated that economic development and environmental stewardship are not competing priorities. Our state works best when we pursue both together. As Alaska’s tourism, fishing and construction industries ramp up for another busy summer, RDC is concluding a legislative session that carried signifi- cant implications for the state’s econom- ic future. On a positive note, we were excited to see the Legislature pass federal
match transportation funding before the start of the summer construction season and other legislation to help incentivize investment and enhance value for Alaska’s fishing industry. In recent months, RDC devoted sub- stantial effort toward supporting policies that advance development of the Alaska LNG Project. This project represents far more than a single development op- portunity. It has the potential to create jobs, provide long-term energy security, support communities across the state and unlock future investment opportunities for Alaska. At the same time, discussions surrounding the project also highlighted a broader issue: the importance of main- taining a stable and competitive invest- ment climate. RDC opposed efforts to attach expansive changes to Alaska’s oil and gas tax structure to legislation intend- ed to advance the Alaska LNG Project. These discussions serve as an important reminder that policy decisions made today influence investment decisions for decades to come. Few examples illustrate this more clearly than the recent announcement from Santos and Repsol of first oil at the Pikka Project. Pikka was not the result of a single legislative session or one policy decision. It represents years of planning, billions of dollars of investment and a long-term commitment to Alaska. It also
reflects the impact of policy decisions made more than a decade ago, creating our current tax structure that encourages new investment and exploration oppor- tunities. The lesson is straightforward: in- vestment responds to certainty, and Alas- ka’s policy choices have real consequences for whether projects move forward. That is also why organizations like RDC matter. Individual companies understand- ably must focus on their own business objectives, meeting economic goals and management strategies. RDC provides in- dustry with the opportunity to contribute to Alaska’s long-term economic success and creating an investment-rich environ- ment for the future. We serve as a vehicle for strategic thinking through election cycles, market fluctuations and individual project goals. As you look around the room at this year’s luncheon, you are seeing more than a gathering of members. You are seeing a coalition committed to ensuring Alaska remains a place where investment, oppor- tunity and responsible development can thrive for generations to come. Thank you again for your support and for being part of RDC’s mission. SINCERELY, CONNOR HAJDUKOVICH EXECUTIVE DIRECTOR RESOURCE DEVELOPMENT COUNCIL FOR ALASKA
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ALASKA RESOURCE REVIEW JUNE 2026
VOLUME 3 | ISSUE 2 | JUNE 2026
VOLUME 3 | ISSUE 2 | MAY 2026
"Making safety a priority is not about slowing Alaska down. It is about making sure we all get to come home and do it again tomorrow. It is about protecting our friends, our families, our coworkers and ourselves." — Scott Habberstad, President, RDC
READY, SAFE, GO: WHY SAFETY MUST BE A SUMMER PRIORITY
S UMMER IN ALASKA IS A SEASON UNLIKE ANY OTHER. AFTER A LONG WINTER, OUR STATE COMES ALIVE WITH ENERGY, MOVEMENT AND OPPORTUNITY. We fish, hike, boat, camp, work long hours and make the most of every minute of daylight. From job sites to family week- ends to double-limit midnight red runs to the Russian River, Alaskans are known for working hard and playing hard. That spirit is part of who we are. But it also comes with responsibility. The same season that brings freedom and adventure also brings risk. Fast-moving water, crowded banks, fatigue, wildlife encounters, changing weather and overconfidence can turn a great day into a bad one in a matter of seconds. That is why safety cannot be an after- thought. It has to be a priority. A simple way to think about it is this: Ready, Safe, Go. Ready means taking time to prepare before leaving the house, the dock, the trail- head or the worksite. It means checking the weather, knowing the regulations, making sure gear is in working order, packing the essentials and telling someone where you are going. Official Alaska safety guidance consistently emphasizes planning ahead, wearing life jackets around water, being bear aware in fishing areas and sharing trip plans before heading out. Safe means staying alert in the moment. It means watching your footing on slick rocks, keeping an eye on kids near water, giving wildlife space and not letting excite-
Photo by Will Leschper Whether you're fishing on the Russian River or on the job, staying safe means staying alert in the moment.
ment or routine override good judgment. Go means enjoying everything Alaska has to offer — but only after the first two steps are in place. The Russian River is a perfect example of why this mindset matters. When the reds are running and the crowds are shoulder to shoulder, people are focused on fish, family and filling the freezer. But crowded fishing conditions demand patience, awareness and respect. Even on the brightest nights, fatigue is real. Midnight sun does not elim- inate the need for rest, hydration or clear thinking. In Alaska, being tired, rushed or distracted can be just as dangerous as being unprepared. Making safety a priority is not about
slowing Alaska down. It is about mak- ing sure we all get to come home and do it again tomorrow. It is about protecting our friends, our families, our coworkers and ourselves. A culture of safety starts with individual choices, but it grows when communities make it normal to speak up, double check, lend a hand and model smart behavior. When we choose to be ready, choose to be safe and then choose to go, we honor the best of what it means to be Alaskan. We can still chase fish, chase adventure and chase every bit of summer — but we should do it with the mindset that preparation is strength, awareness is responsibility and safety is part of the plan every single time.
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ALASKA RESOURCE REVIEW JUNE 2026
VOLUME 3 | ISSUE 2 | JUNE 2026
LEGISLATURE CALLED INTO SPECIAL SESSION
gas pipeline tax legislation, but the issue is likely to return next year. It has been more than a decade since the last major change in oil taxes and some legislators argue that a performance review of the tax is merited. Alaska’s production tax is a net prof- its-type tax with a complex web of tax cred- its and deductions that make it one of the most complicated petroleum tax systems in the world, tax experts have said. Alas- ka changed its oil and gas tax from a tax on gross revenues to net income in 2006, an initiative pushed by former Gov. Frank Murkowski. In the following years, changes were made that made the tax complicated and unpredictable to the point that it deterred new investment by companies. Major changes in 2013 corrected that, in Senate Bill 21, so that it became more predictable. The changes led to major new industry in- vestments in drilling and exploration and to projects now in construction, like Willow, and newly in production, like Pikka. But while SB 21 has performed in en- couraging major developments, some peo- ple feel that problems may be developing,
and that the complex structure of tax cred- its in the law have led to unexpected effects. Overall, the tax could be simplified so it is more transparent, it is argued. This is an is- sue for next year. Meanwhile, Gov. Dunleavy did lead an initiative for revenue diversification this year with a proposed state sales tax. Dunleavy is known for his opposition to almost all forms of tax but recently did endorse the sales tax as the least harmful among options. Alaska is one of the few states with no state sales tax or state personal income tax. For years, its budget has been supported by oil revenues and, more recently, a portion of earnings of the state’s $80 billion-plus Alaska Permanent Fund. However, oil and financial markets are volatile, making Alas- ka vulnerable to market downturns over which it has no control. For years, many have argued that a broad-based tax paid by citizens should be part of the state’s revenue matrix. Dunleavy argued that a sales tax is better than a per- sonal income tax, the most oft-mentioned alternative broad-based tax. However, this was strongly opposed by municipalities that
now have sales taxes, which include most of the state’s local governments. Local governments feared that the compounding of local and state sales taxes would discourage local purchases, encour- aging consumers to buy out of state and losing business for Alaska merchants. There were also concerns that a sales tax would affect lower-income residents more than those with medium-to-higher incomes. There were a number of other accom- plishments. In housing, a bill passed that gives municipalities more flexibility in ex- panding targeted property tax exemptions for rehabilitation of distressed properties, and low-income and first-time homebuy- ers. In education, a bill was passed for a pilot student loan repayment program for teachers, to help in recruitment and reten- tion. There was a lot of work done to improve public employee pensions to help with re- cruitment and retention. The Legislature passed the bill, but it was vetoed by the gov- ernor, who issued concerns with the legisla- tion. The Legislature attempted to override the veto, but it failed.
State lawmakers run out of time in resolving differences on tax bills BY TIM BRADNER THE STATE LEGISLATURE’S 2026 REGULAR SESSION WAS MOSTLY SMOOTH AND PRODUC- TIVE, UNTIL THE END. That’s when an upset over gas pipeline tax legislation disrupted things. Lawmakers had finished much of their regular work on bills, but things broke down over the pipe- line bill. Gov. Mike Dunleavy called legisla- tors into a special session to continue work. No legislator disagrees on the impor- tance of the gas pipeline or even the need to solve a problem with state property tax- es that cloud its financing. But lawmakers simply ran out of time in resolving com- plex differences between versions of bills in House and Senate committees. The work continues. Overall, the 120-day session was pro- ductive. Serious problems were addressed in energy, education and health care. Not all bills passed, however, and the governor may yet veto some bills that passed. Still, the Legislature showed it can move quickly to respond to serious issues when they arise, most recently the fuel crisis affecting rural communities. Due to the war in Iran, fuel prices have doubled in some western Alaska communi- ties where there were already high prices. There may now be problems in fuel supply, too. Responding to this, a bill to expand state bulk fuel loans was introduced late in the session and moved quickly through the House and Senate. Higher loan limits, in- creased from $750,000 to $1.5 million, will enable communities to pay companies de- livering fuel. The loans have to be paid back the following year, however. The Legislature also added money for rural Power Cost Equalization, a program
The effort for a major review of the production tax did not gather steam partly because legisla- tors were preoccupied with the gas pipeline tax legislation, but the issue is likely to return next year. It has been more than a decade since the last major change in oil taxes and some legisla- tors argue that a performance review of the tax is merited.
where mining companies are exploring. For a while, it appeared the Legislature might move to increase oil and gas taxes. A major overhaul of the state petroleum pro- duction tax statute was pushed early in the Resources Committee in the Senate, but the bill stopped in the Senate Finance Commit- tee. There were also efforts for a targeted tax aimed at oil and gas producers organized as S-Corporations. In Alaska, corporations organized as ordinary C-Corporations pay the state’s corporate income tax, but S-Cor- porations do not pay the tax because the li- ability is passed to shareholders. But since Alaska has no personal income tax, no tax is paid. This has irked some legislators and proposals were made that S-Corporation producers pay a special tax of a similar amount they would have paid if they were a C-Corporation. This passed the Senate as an amendment to a bill authorizing a sale of state royalty oil to Marathon Petroleum for its refinery at Nikiski. The state House did not accept the amendment, however, main- ly on the grounds that it seemed unfair to tax one major producer, Hilcorp Energy, which is an S-Corporation. The effort for a major review of the pro- duction tax did not gather steam partly be- cause legislators were preoccupied with the
that helps rural homeowners deal with high electricity costs, and also reinforced pro- grams to help low-income families with as- sistance in paying high heating bills. These measures will be paid for, ironically, with higher state oil revenues coming into the treasury. The bump in oil income also allowed the Legislature to fund a backlog of de- ferred maintenance in schools around the state and at the University of Alaska. Years of tight budgets had put school adminis- trators in the position of deciding between sustaining classroom teaching or tackling maintenance issues. Maintenance typically took a backseat, leading to leaky roofs and malfunctioning boilers in many schools. There’s widespread support for this in the Legislature. “There is no question Alaska has signif- icant infrastructure needs. Many schools, public buildings, transportation systems and utilities across the state are aging,” said Rep. Kevin McCabe, R-Big Lake, a conser- vative Republican but also a strong support- er of infrastructure investment. McCabe also applauded the Legislature’s support for transportation projects, such as receiving federal funds to continue work on the West Susitna Access Project, a proposed 99-mile industrial access road to reach areas in the western Matanuska-Susitna Borough
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mately to Trans Alaska Pipeline Pump Station One at Prudhoe Bay. The project is expected to boost production by 6,000 barrels per day be- ginning in the middle of 2026, said De- nali Kemppel, a Hilcorp Alaska vice president, in a briefing to the House Re- sources Committee of the state Legisla- ture this spring. The project involved a $50 million investment in ice roads and construction in 2025 and the movement of Doyon Drilling’s Rig 15 by barge to Point Thomson, Kemppel told legislators.
The company will also move the Nordic 15 rig to the field. At Prudhoe Bay, Hilcorp is working on its Project Taiga, a project to develop two new production pads — “I pad” and “O Pad” — on the west end of the Prud- hoe field. The gravel pad for O Pad was scheduled to be built in early 2026. The project will cost about $1 billion and will add about 30,000 barrels per day at peak to Prudhoe Bay production, Kemppel said. Development of I Pad will follow.
drill expectations, Santos said. First sales of oil are expected two to three months following first oil, with Santos and its partner, Repsol, alternating tanker ship- ments from the Port of Valdez. Santos owns 51% of Pikka with Repsol as a minority owner at 49%. Santos Managing Director and Chief Executive Officer Kevin Gallagher de- scribed Pikka as a “tier-one asset in one of the world’s super basins.” "Alaska has a huge runway ahead of it which will underpin our production growth for Santos for the long term. When the Pikka Field was discovered, the Nanushuk formation was recognized as a new generation play in an established global super basin, and we are proud to be at the forefront of unlocking its re- source potential,” Gallagher said. “As we now take Pikka phase 1 into operations, we are transitioning from project execu- tion to our disciplined, low-cost operat- ing model which will maximize the proj- ect’s value.” Earlier this year, Santos announced results of its Quokka-1 appraisal well south of Pikka, which demonstrated the quality of the company’s broader Alaska portfolio. Quokka has been described as a “second Pikka” development. “With development of the Quokka and Horseshoe Units of the high-quality Nanushuk reservoir ahead of us, we have clear line of sight to strong production growth on the North Slope, subject to continued appraisal, development plan- ning and final investment decisions,” Gallagher said. As Pikka is geared up, a number of other North Slope projects are underway including ConocoPhillips’ ongoing con- struction of its Willow field, expected to begin production in 2029. ConocoPhil- lips has a number of other new projects underway in and near the larger pro- ducing fields, such as the Kuparuk River field, where it is the owner and operator. Hilcorp Energy also has projects un- derway in fields where it is operator, at the large Prudhoe Bay field and at Point Thomson, the large gas and condensate field about 60 miles east of Prudhoe Bay. Hilcorp is drilling a new production well at Point Thomson, which will increase the flow of condensates though the pipe- line that connects the field with the small Badami oil field further west and ulti-
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SANTOS, REPSOL BEGIN PRODUCTION AT PIKKA Photo Courtesy Santos First sales of oil are expected two to three months following first oil, with Santos and its partner, Repsol, alternating tanker shipments from the Port of Valdez.
First oil begins flowing at project destined for 80,000 barrels per day BY TIM BRADNER SANTOS HAS STARTED PRODUCTION AT ITS NEW PIKKA FIELD ON ALASKA'S NORTH SLOPE. PHASE 1 OF THE PROJECT IS UNDERWAY WITH
THE FIRST OIL FLOWING MAY 17 THROUGH THE LEASE AUTOMATED CUSTODY TRANSFER ME- TER INTO THE PIKKA SALES OIL PIPELINE. Pikka will see an initial ramp-up to 20,000 barrels per day through late May and early June as key systems are progres- sively brought online, Santos said in its announcement. Production is expected to be maintained at that level for about a month until water injection is established
following the startup of the Seawater Treatment Plant. Together with the production well development and progression of well tie- ins, the project is expected to reach a pro- duction plateau of 80,000 barrels per day during the third quarter, Santos said. At “first oil,” 28 development wells have been drilled, of which 21 have been stimulated with results meeting the pre-
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ALASKA RESOURCE REVIEW JUNE 2026
VOVLUOMLUEM1 |EIS3 S| UISES2U|ES2U|MJUMNEER 20264
ALASKA LNG: TAXES STILL A WORK IN PROGRESS
several hundreds of millions of dollars on ad- vanced engineering and design in 2015 and 2016. The producers ultimately decided that while the project appeared marginally via- ble, the state would be better off with an in- frastructure company as a partner in Alaska LNG. That led the state, after several years, to select Glenfarne, a company specializing in energy projects, to be a partner. Through all of this, however, the state property tax on oil and gas facilities has been known to be an economic hurdle along with other challenges, such as the high capital cost. While not much can be done about the capital cost, the state tax burden can be modified. The particular problem with the property tax is that the current state 20-mill tax, which is 2% of the assessed property value, is paid yearly. While oil producers have paid this since the 1970s, the crude oil they produce has a much higher value than does natural gas. Under the current state tax, Alaska LNG would pay about $1 billion a year, which is a real burden for the project, particularly in its early years, against its main competitors on the U.S. Gulf Coast and Canada, who
pay much lower local taxes. The current plan by the governor and Glenfarne is an alternative commonly done where the particular structure of a tax is a problem. It is a Payment-in-Lieu-of-Tax (PILT), an alternative tax. The propos- al from the governor and Glenfarne is for a tax based on the volume of gas shipped rather than the assessed property value, which is typically done with property taxes. It took a while for legislators to under- stand the advantages of this, but a big one is that it ties the tax to production rather than a property appraisal, which can be subjective and the source of costly disputes, as experi- ence with the Trans Alaska oil pipeline has shown over the years. No one really argues with this but the debate in the Legislature has mostly been over the tax rate. The gov- ernor and Glenfarne are asking for a rate of 6 cents per thousand cubic feet, or mcf, with a mechanism to share this with local govern- ments along the pipeline route. As legislative committees worked on the bills, tax rates climbed to 15 cents/msf and even 25 cents for gas through the LNG plant. When the governor and Glenfarne
balked, the rates were reduced. In the latest Senate bill, it is roughly what the governor and Glenfarne want. There are other issues, however. The proposal by the governor and Glenfarne originally had no up-front payment to mu- nicipalities to offset the cost of local impacts during construction. This quickly became a must-have for municipalities and legislators representing them, particularly for Fairbanks where there are painful memories of impacts during the 1970s with construction of the oil pipeline. The governor and Glenfarne responded with a proposed impact fund but discussions over this consumed a lot of time. Fairbanks also pushed for guarantees of a spur pipeline so North Slope gas could be supplied to the Interior city. The pipeline route for Alaska LNG is west of Fairbanks and there is no connection absent a con- necting spur. The requirement for a spur is now in the House and Senate bills, but how it would be paid for is still being discussed. A major unresolved issue is the cost of gas delivered within Alaska if only the first phase pipeline-only project is built and the LNG export plant is not built or delayed.
State partner Glenfarne says project not viable under current structure BY TIM BRADNER STATE LEGISLATORS RAN OUT OF TIME ON AN IMPORTANT BILL TO EASE STATE AND LOCAL PROPERTY TAXES ON THE PROPOSED ALASKA LNG PROJECT, BUT CONTINUED WORK IN A SPE- CIAL SESSION. THE SPECIAL SESSION BEGAN AS LAWMAKERS ADJOURNED THEIR REGULAR SESSION MAY 20, AS WAS REQUIRED UNDER THE STATE CONSTITUTION. The legislation is Gov. Mike Dunleavy’s top priority in his final year in office. Glen- farne, the state’s partner in the project, says state and local property taxes make the project uneconomic. The governor and the company have proposed an alternative that would lower the tax burden to match taxes paid by large liquefied natural gas (LNG) export projects operating in the Gulf of Mexico and now British Columbia. These are now Alaska’s competitors in Asia, the prime market for Alaska LNG. Alaska LNG is now divided into two phases, an initial first phase that would build a 42-inch gas pipeline from the North Slope to Southcentral Alaska to serve Alas- ka utilities and gas customers, followed by a phase two with a large LNG project at Ni- kiski, near Kenai, that would export large volumes of liquefied gas to Asia. House and Senate committees in the Leg- islature invested a huge amount of time this spring working through complex details of the plan by the governor and Glenfarne, led by CEO and founder Brendan Duval. It was a heavy lift, however, given the compressed schedule. The governor did not introduce the proposals, in HB 381 and SB 280, until March 20, about halfway through the 120-day ses- sion, a time when legislators were busy with the state budget and other priority bills. By May 20, adjournment day, both the
Photo Courtesy Alaska Sustainable Energy Conference Gov. Mike Dunleavy and Glenfarne CEO Brendan Duval provided updates and insight on the Alaska LNG project at the recent Alaska Sustainable Energy Conference.
The Alaska LNG Project is the latest, but most advanced, proposal to build a large-di- ameter natural gas pipeline from the North Slope to Southcentral Alaska and to a planned large LNG export plant that would ship liq- uefied gas to Asia. Many initiatives have been made since the 1970s to move the large gas reserves on the North Slope to market either in Asia as LNG or by a long-distance pipeline to the continental United States. Major North Slope oil producers, which own the gas, were involved in many of these initiatives, along with major U.S. gas trans- mission and Canadian pipeline companies. The prior efforts failed mainly due to the huge capital costs as well as unexpected changes in market conditions such as when inexpensive U.S. shale gas entered the domestic market. The Alaska LNG Project as we now know it grew out of the most advanced initiative involving the North Slope producers. Exxon- Mobil led this with BP and ConocoPhillips as partners, as well as the state of Alaska through its state gas corporation, the Alaska Gasline Development Corp. (AGDC). The state it- self is a major owner of the North Slope gas through its royalty share of reserves. The producer and state consortium spent
House and Senate had actually made con- siderable progress. They had made changes in the bills to meet the objections of mu- nicipalities along the pipeline route affected by the state basically preempting their tax. Other changes were to better protect the state’s interests, as they saw it. In fact, the Senate had lowered its tax rate in the latest version of SB 280, its bill, to what the governor and Glenfarne asked for. How- ever, there were still too many differences and too little time to mesh the House and Senate, which differed, as the clock ticked down to- ward the midnight adjournment May 20. A last-minute attempts in the House to speed up the process by adding language es- sentially agreed on in both the House and Senate bills failed. The governor had offered a trade with his agreement not to veto a major pension reform bill passed by the Legislature if lawmakers enacted his bill. The House spent hours debating the trade on the pension bill but couldn’t reach agreement after one munic- ipality, the North Slope Borough, raised con- cerns about giving up its rights to tax property within its boundaries. With that, the gover- nor vetoed the pension reform bill. The issue could rise again in the special session.
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ALASKA RESOURCE REVIEW JUNE 2026
VOLUME 3 | ISSUE 2 | JUNE 2026
GAS FOUND IN COOK INLET, BUT LNG IMPORTS ON WAY
Thousands of Miles of Experience Committed to Client Satisfaction Dedicated to Safety Excellence
Three import projects, new storage options touted to lessen impact BY TIM BRADNER THERE IS MORE GAS TO BE FOUND IN COOK INLET. INDEPENDENT COMPANY HEX ALASKA IS SHOWING THAT, ALONG WITH HILCORP ENERGY, THE REGION’S MAJOR GAS PRODUCER. Hilcorp is working with Chugach Elec- tric Association at the Beluga River gas field, where the two are partners. They are having good luck with new wells at Beluga, where the two have been drilling four to five wells yearly. Chugach is 60% owner at Beluga. Its share of new gas, which can be placed in storage, is enough to give it another year of gas supply before having to import lique- fied natural gas (LNG) to help power elec- tric generation in Alaska. HEX, meanwhile, found gas in two new wells it drilled last year from its Allegra Leigh production platform in the Kitch- en Lights offshore gas field in north Cook Inlet. The new gas was sold to ENSTAR Natural Gas Co. and it helped the regional utility augment its gas supply during an ex- ceptionally cold winter. HEX, which is Alaskan-owned, plans more drilling this year and says prospects for more gas are good. Chugach and Hil- corp meanwhile plan more work at the Beluga field this year. Hilcorp also is busy drilling in other parts of the Inlet. New gas storage capabilities in Cook Inlet are also important. Hilcorp has long stored gas for its customers in depleted gas reservoirs but a new state law allowing the company to offer storage to third parties like Chugach Electric is allowing the elec- tric cooperative to store some of the gas it is producing at the Beluga field. Also, investments at another gas storage facility, the Cook Inlet Natural Gas Storage Alaska (CINGSA), allow it to operate at greater efficiency. CINGSA is operated by
There are now three LNG import plans. The farthest along is a project by Harvest Alaska, the infrastructure affiliate of pro- ducer Hilcorp Energy, to convert the moth- balled former ConocoPhillips LNG export plant at Nikiski, near Kenai, to become an import terminal. Harvest now owns the plant and is well along in engineering and regulatory ap- provals for its conversion to import LNG. The company is working in partnership with Chugach Electric to bring in and store LNG for the electric cooperative. Another plan, advanced by ENSTAR and Glenfarne Group, the infrastructure company also leading the Alaska LNG Project, is to pre-build a loading terminal and LNG storage at Nikiski to be able to import, and store, LNG for ENSTAR and other customers until the large Alaska LNG Project is built. A third plan now put forth by a new company, Cook Inlet LNG LLC, would convert the existing Osprey oil production platform on the Inlet’s west side to unload from a Floating Storage and Regasification Unit (FSRU). This would be moored adja- cent to the existing platform. The LNG would be “regasified” — con- verting it back to gaseous state by heating the liquified gas — and the gas moved through existing pipelines on the Inlet’s west side. Cook Inlet LNG is now working on regulatory approvals and plans to begin preliminary engineering for conversion of the oil platform. FSRUs are commonly used to transport LNG elsewhere and there are units that could be brought to Alaska. One of these projects will move forward as a contingency. While the Harvest Alas- ka conversion of an existing plant can be done faster, ENSTAR argues that its plan will have more capacity and will be more cost-effective. Cook Inlet LNG, on the other hand, said its plan to use an existing platform also can be economical. Which of these plans move forward, and how the de- cision will be made, are still uncertain.
ENSTAR, which is also one of its owners. While regional utilities like Chugach Electric and ENSTAR are breathing a little easier about the near term gas supplies, the long-term picture hasn’t changed. Large “legacy” gas fields in the Inlet that have long supplied gas for heating and power genera- tion are declining. New gas is being found but it’s not enough to fill the long-term gap. It’s hoped that the Alaska LNG project will move forward to bring large gas sup- plies from the North Slope but this is still uncertain. Meanwhile, the regional utilities have to have a backup plan, which is to im- port LNG to augment declining local gas. Utilities like ENSTAR and Chugach Electric are legally obligated to be able to supply their customers, regardless of the energy source. Planning for the contingen- cy, however, takes preparation focused on logistical solutions. Here’s a breakdown of three current LNG import plans for Alaska: Plans to import LNG to Alaska n Plan would convert the former ConocoPhillips LNG export plant at Nikiski to become an import terminal. Harvest owns the plant and is working to secure engineering and regulatory approvals. n Plan would pre-build a loading terminal and LNG storage at Nikiski to be able to import and store LNG for ENSTAR and other customers. Harvest Alaska ENSTAR and Glenfarne Group n Plan would convert the existing Osprey oil production platform on the Inlet’s west side to unload from a Floating Storage and Regasification Unit (FSRU). Cook Inlet LNG LLC
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ALASKA RESOURCE REVIEW JUNE 2026
VOLUME 3 | ISSUE 2 | JUNE 2026
BUILDING ALASKA’S FUTURE WORKFORCE
ConocoPhillips now past halfway mark on Willow in NPR-A
quite a number of inclement weather days, ConocoPhillips Executive Vice President Kirk Johnson said. “Despite that, again, our teams were able to accomplish the full winter scope … we were able to get all of the bridges down and the en- tirety of the gravel scope. So, think road, pads and even the airstrip,” Johnson said. Getting the gravel work done last winter is important because the roads and pad need a summer season for compression, which will allow their use next winter. Another accom- plishment is bringing a connection for fuel gas to Willow, which will allow for power genera- tion, Johnson said. Willow is expected to produce at a peak production of 180,000 barrels per day with three production pads beginning in 2029. The project is significant because Willow is the first major oil development in the 23-million-acre NPR-A.
transit across ice roads to Willow in 2028. Willow is on schedule for startup in early 2029. ConocoPhillips Chairman and CEO Ryan Lance and other top executives briefed invest- ment analysts on Willow and other topics in the company’s quarterly earnings call April 30. Lance said the company is proud of its completion of a productive winter NPR-A exploration season. Four test wells were drilled in a search for new discoveries on leases held by the company. This sets ConocoPhillips up for potential new oil to flow to Willow’s processing facilities, Lance said. “It’s still early days but we are excited about the opportunity and the results, and more low-cost resources coming to the Willow area,” he told analysts during the earnings call. A part of the winter exploration season in- cluded additional seismic work and exploration for gravel resources that will be needed for future road and pads, he said. The winter season had its challenges with
ConocoPhillips is now past the halfway mark in construction of its Willow project in the National Petroleum Reserve-Alaska (NPR-A), on the western North Slope. Willow’s capital cost is estimated at $8.5 billion to $9 billion. The company was able to meet all of its objectives in the winter construction season that recently ended, particularly key roadwork, pads and bridges that will allow the summer work to continue on schedule. The east-west pipeline connection also progressed, which will allow oil from Willow to flow through existing pipelines in the Alpine and Kuparuk River fields to Pump Station One of the Trans Alaska Pipeline System, which is in the Prudhoe Bay field. About 2,000 people were employed last win- ter season. The workforce will drop to 1,000 for summer construction and ramp up again for next winter with 2,000 expected to be employed. The company is preparing for process plant modules to be delivered by sealift in 2027 followed by
How ConocoPhillips is supporting education, skilled training of workers EDITOR'S NOTE: Tim Turner is Vice President of Operations
with ConocoPhillips Alaska. He has spent 20 years with ConocoPhillips spanning a variety of engineering and production operations leadership roles in the Lower 48 and Alaska. We asked him to provide an overview of process technology education in Alaska and how ConocoPhillips is helping Alaskans earn skills needed for safety-critical jobs.
WHAT IS THE PURPOSE OF THE CONOCOPHILLIPS ALASKA UA PROCESS TECHNOLOGY SUPPORT FUND, AND WHY IS NOW THE RIGHT TIME FOR CON- OCOPHILLIPS TO LAUNCH THIS PARTNERSHIP WITH THE UNIVERSITY OF ALASKA SYSTEM? The purpose of the ConocoPhillips Alaska Process Technology Support Fund is to strengthen process technology education state- wide — so more Alaskans can earn the skills needed for safety-crit- ical jobs that support Alaska’s economy. We launched the fund with a $400,000 contribution to sup- port the University of Alaska (UA) process technology programs in Fairbanks and on the Kenai Peninsula, including equipment and technology upgrades and expanded outreach. This is the right time because the workforce need is real and immediate, and because UA’s process technology programs already deliver strong outcomes — about 87% of graduates enter Alaska’s workforce within a year. We see this as a long-term workforce development investment that connects classroom learning to real careers, and we hope it also en- courages additional industry partners to invest in this vital pipeline. HOW WOULD YOU DESCRIBE THE CURRENT NEED FOR SKILLED PRO- CESS TECHNOLOGY PROFESSIONALS IN ALASKA’S ENERGY INDUSTRY, AND WHAT GAPS IS CONOCOPHILLIPS HOPING TO HELP ADDRESS THROUGH THIS INITIATIVE? Alaska’s energy industry depends on highly skilled process technicians and operators to keep critical infrastructure running safely and reliably. The need is growing, and the challenge is two- fold: awareness and access. Too few Alaskans — especially students in rural communities — know this career path exists, and training programs need the modern tools and reach to prepare students for today’s operating environments. This initiative helps close those gaps by expanding early expo- sure for high school students, modernizing hands-on training, and creating clearer pathways from classroom to good-paying, in-de- mand careers in Alaska.
— Tim Bradner
Photo Courtesy of ConocoPhillips Alaska
abstract for us — it shows up every day in the people who keep our operations safe and running. Many ConocoPhillips Alaska operators started in the University of Alaska process technology programs, and we know the value of graduates arriving with strong fundamentals and hands-on experience. Our involvement helps ensure the training stays aligned with real-world needs: emphasizing safety culture, reliability, prob- lem-solving and the technologies students will see on the job. It also means we can contribute in practical ways — indus- try speakers, engagement during outreach, and clearer pathways through internships and apprenticeships — so students can see a future in this field and move from education into career opportu- nities in Alaska. LOOKING AHEAD, WHAT KIND OF LONG-TERM IMPACT DO YOU HOPE THIS PARTNERSHIP WILL HAVE ON ALASKA’S TALENT PIPELINE AND THE SUSTAINABILITY OF THE STATE’S ENERGY WORKFORCE? Long term, we want this partnership to make process technol- ogy a well-known, accessible pathway to stable, high-demand ca- reers — especially for Alaska students who might not otherwise know about or see themselves in these roles. Success looks like more students earning early college credit, more modern training capacity, and more graduates stepping into jobs across Alaska’s critical industries. On our side, we’re also expanding career on-ramps — our goal is to increase our process tech/operator summer interns each year, split between high school and college-level opportunities, and a stronger pipeline of operator apprenticeships for post-graduates. Together, those pieces help sustain a workforce that can support safe operations and long-term economic vitality for Alaska.
HOW DOES THIS FUND STRENGTHEN BOTH IN-PERSON LEARNING IN PLACES LIKE FAIRBANKS AND FLEXIBLE OR VIRTUAL PATHWAYS LIKE THOSE OFFERED IN KENAI, ESPECIALLY FOR DUAL-CREDIT HIGH SCHOOL STUDENTS AND WORKING ADULTS? We designed this support to strengthen the program where stu- dents learn — in labs, classrooms and communities—while also expanding flexible access. In Fairbanks, the fund helps modernize hands-on training capacity with updated instructional equipment and simulation technology, so students practice on tools that mir- ror real operational environments. Statewide, UA’s high school bridging approach makes it pos- sible for students to earn college credit early through a 3-credit introductory process technology course that can be offered both in-person and online. On the Kenai Peninsula, the fund supports programs that meet students where they are, including outreach that builds awareness in rural communities through the “Taste of College” program, and a “train-the-teachers” approach — enabled by portable simulation equipment — so more high schools can offer dual-credit process technology courses. And to help students take the next step after high school, we’ve also launched a scholarship fund for those pursuing the two-year Process Technology degree through the University of Alas- ka — whether they attend in Fairbanks or on the Kenai Peninsula. WHAT DOES CONOCOPHILLIPS’ DIRECT INVOLVEMENT AND SUPPORT MEAN TO YOU PERSONALLY, AND HOW DOES IT SHAPE THE WAY THIS PRO- GRAM IS BUILT AND DELIVERED? Personally, this matters because workforce development is not
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ALASKA RESOURCE REVIEW JUNE 2026
ALASKA ON THE HILL
VOLUME 3 | ISSUE 2 | JUNE 2026
other business groups traveled for the event, which serves as a way to help share with Federal officials the importance of our Alaska natural resource industries. Thank you to everyone who attended and spoke on behalf of Alaska, and thank you all for supporting the RDC and our important mission!
RDC staff and board members once again stood with our numerous partners in all of Alaska’s business industries in Washington, D.C. last month at the third annual Alaska on the Hill. About 150 Alaskans who are part of 15 organizations from mining, fishing, forestry, oil and gas, tourism, Alaska Native Corporations, and
Here is what attendees had to say about attending Alaska on the Hill: "What I came away with is that Alaska is not alone when it comes to permitting reform. This is a national, bipartisan issue: every person we spoke to on this matter, regardless of whether they represented North Dakota, New Mexico, New York or Louisiana, was in favor of permitting reform. It was refreshing to see that consensus firsthand. "With Alaska at the forefront of countless essential natural resource projects, I am hopeful this momentum will continue so that future re- sponsible resource development projects can be realized. This will not only benefit our great State of Alaska, but the Nation as a whole." — Thomas Mack, CEO, The Eyak Corporation and RDC Board Member "Anything that we can do individually or as a group to bring more awareness and give more weight to our shared vision of responsible de- velopment benefits all involved, and can impact generations to come!" "We must change the narrative about our state and become the asset we were meant to be for America through the development of our vast resources. This event helps us all lead change." — Jim Hill, All Pro Alaska Forklift and RDC Board Member “Attending Alaska on the Hill for the first time was an incredibly meaningful experience. I was proud to see such strong engagement from peo- ple across Alaska and a wide range of industries, all coming together to bring key issues to Wash- ington, D.C. My hope is that this momentum con- tinues to grow and that members of Congress across the country continue to hear — and act on — the voices of Alaskans on Alaska’s issues.” — Cheyanna Kuplack, Communications Manager, Doyon Limited
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