Alaska Governor Mike Dunleavy says lawmakers' decision not to reconvene and vote on a tax change stalled the bill needed to advance the $50 billion Alaska LNG pipeline and terminal. He is now urging legislators to return on August 20, while the project's lead developer still needs more binding buyers to unlock financing.
Governor calls the delay a negative signal
Alaska Governor Mike Dunleavy said he was deeply disappointed that a bill to advance a pipeline for the Alaska LNG project stalled in the state legislature, which would export natural gas to Asia. In a post on X late Wednesday, Dunleavy said the legislature's decision not to reconvene this session to vote on a tax change needed to advance the $50 billion pipeline and terminal project would send a negative signal to investors and potential partners.
Legislators cited insufficient support for the bill, local news station KTUU reported. The project would also increase access to gas for domestic use. According to Reuters: "Alaska is running out of affordable, reliable natural gas", Dunleavy said, adding that delaying action only increases risk, raises costs, and limits future options.
KTUU reported that Dunleavy is now urging lawmakers to reconvene on August 20 to vote. The Trump administration has promoted the Alaska LNG project as a way to boost national security and trade with partners and allies, including Japan. The White House and the Department of Energy did not immediately respond to requests for comment, nor did Glenfarne, the project's lead developer.
Asian buyers line up, but financing still lags
Glenfarne executives said in March that the war in the Middle East is spurring interest in Asia for gas from Alaska LNG. They said at the time the company aimed to make final investment decisions this year and next, and start shipping liquefied natural gas in 2031.
Japan's two biggest LNG importers, JERA and Tokyo Gas, have signed preliminary deals to buy a combined 2 million metric tons a year from Alaska LNG. Yet final approvals for the pipeline and export terminal are delayed because Glenfarne has yet to reach its target of signing binding offtake deals for 80% of the planned export capacity of 20 million tons a year of LNG.
In March, Glenfarne executives said they had lined up commitments for 13 million tons a year and needed agreements for another 3 million tons, along with binding commitments, to line up financing.
Source: Investing.com
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