Alaska lawmakers seek Jones Act waiver for LNG transportation to local residents

Alaska's quest for energy independence took center stage during a recent Senate Transportation meeting, where lawmakers discussed the urgent need for a congressional waiver to the Jones Act. This legislation, established in 1920, mandates that ships transporting goods between U.S. ports must be built, owned, and crewed by Americans. Currently, no liquefied natural gas (LNG) tankers meet these requirements, leaving Alaska unable to ship its own gas to residents despite having abundant resources.

Senator Cedric Myers highlighted the paradox of Alaska's situation: while the state could export gas globally, it cannot utilize its own resources domestically. To address this, he emphasized the necessity of connecting the North Slope to Cook Inlet, which would require a waiver from Congress. Historical precedents for such waivers exist, including those granted for oil drilling rigs and emergency fuel deliveries in the past.

Former Lieutenant Governor Mead Treadwell, now CEO of Kielak LNG, echoed Myers' sentiments, urging the committee to view the proposed legislation as a means to deliver gas to Alaskans rather than merely a Jones Act modification. He noted that various projects are exploring ways to bring North Slope gas to market, with interest from both local utilities and potential buyers in Hawaii.

Treadwell also discussed the challenges of constructing U.S.-built icebreakers necessary for year-round gas transport, as current options are costly and primarily built overseas. He suggested that reflagging foreign vessels could provide a quicker solution to meet Alaska's immediate needs while supporting American jobs.

The discussions underscored the critical need for legislative action to facilitate the use of Alaska's natural gas resources, which could significantly benefit local communities. As the committee considers the resolution, the focus remains on securing a long-term solution that ensures Alaskans can access their own gas supply. The outcome of this meeting could pave the way for a more sustainable energy future for the state.