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Governor Dunleavy outlines short‑term Cook Inlet measures and pushes long‑term gas pipeline plan

Office of the Governor, State of Alaska · January 8, 2025

Summary

Governor Dunleavy said the state will pursue near‑term steps to increase Cook Inlet gas and pursue a long‑term Alaska LNG pipeline, arguing officials must act now to keep lights and heat on while pursuing projects that could deliver North Slope gas to markets.

Governor Dunleavy opened a state press conference by saying Alaska faces an "inflection point" on energy and that the administration’s immediate priority is ensuring reliable gas and power for the rail belt. He told reporters the state expects more drilling and short‑term measures in the Cook Inlet, while continuing to pursue a large gas pipeline as the longer‑term solution.

"We believe the long term solution is the big gas line," Dunleavy said, framing the pipeline as both an internal supply and export opportunity. He said the administration will press the legislature on near‑term proposals such as royalty relief and other fiscal incentives to make marginal Cook Inlet wells economic, and defended ongoing discussions with leaseholders "on what it would take to produce more gas."

The governor said some incremental inlet gas could come online within about a year if ongoing drilling converts to production and cited wells being drilled by companies like Hillcorp and Hex. He acknowledged higher short‑term prices for some supplies and told utilities he supports any approach that preserves power and heat for residents over the next few years.

Dunleavy also described plans to meet investors at an international conference in Dubai; he said representatives from AGDC, DNR and AEA will accompany him to solicit investment across conventional and renewable energy sectors. He said the administration will roll out potential legislative stopgap measures before the session but declined to give full details until the proposals are final.

The press conference mixed immediate operational steps — more lease work, storage and drilling — with the governor’s long‑term push for a North Slope pipeline to supply Alaskans and international markets. The administration said it would continue coordinating with utilities and state agencies to track production, storage and possible temporary imports if required.

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