Consultant says 6'cent alternative volumetric tax could improve AKLNG project's margins At an April 1 House Resources hearing, a Gaffney & Klein consultant said replacing Alaska's property tax regime for AKLNG with a 6'cent alternative volumetric payment (AVP) would expand the project's viability window; AGDC warned high property taxes could still put the pipeline 'out of the money. Lawmakers pressed for more modeling and set an amendment deadline for HB 381.

A proposed shift to a 6-cent volumetric tax could unlock new profitability for Alaska's LNG project, but lawmakers are raising crucial questions about its impact on local revenues.

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