Alaska LNG Pipeline Bill Stalls, Sending Negative Signal to Investors

Alaska Governor Mike Dunleavy expressed disappointment over the stalled Alaska LNG pipeline bill in the state legislature. The bill aimed to advance a $50 billion project for exporting natural gas to Asia, which would also increase access to affordable and reliable gas for domestic use.

Dunleavy said that delaying action on the project 'only increases risk, raises costs, and limits future options.' He urged lawmakers to reconvene on August 20 to vote on a tax change needed to advance the project. The Alaska LNG project has been promoted by the Trump administration as a way to boost national security and trade with partners and allies, including Japan.

The lead developer, Glenfarne, has yet to reach its target of signing binding off-take deals for 80% of the planned export capacity of 20 million tons per year of liquefied natural gas. The project's pipeline and export terminal final approvals are delayed due to this issue. Japan's two biggest LNG importers, JERA and Tokyo Gas, have signed preliminary deals to buy a combined 2 million metric tons per year from Alaska LNG.

Dunleavy believes that the legislature's decision not to reconvene this session would send 'a negative signal' to investors and potential partners. He emphasized that Alaska is running out of affordable, reliable natural gas, making action on the project urgent.