Key facts
- A bill to advance the Alaska LNG project failed in the state legislature.
- Governor Mike Dunleavy called the failure deeply disappointing and a negative signal to investors.
- The project aims to export natural gas to Asia and increase domestic supply.
- Legislators did not reconvene to vote on necessary tax changes.
- The Trump administration had promoted the project for national security and trade benefits.
Alaska Governor Mike Dunleavy expressed deep disappointment after a bill crucial to advancing the $50 billion Alaska LNG project failed to pass the state legislature. He stated that the legislature's decision not to reconvene to vote on necessary tax changes sends a "negative signal" to investors and potential partners.
Legislators cited insufficient support for the bill, according to local news station KTUU. The project, a joint venture between U.S. energy developer Glenfarne Group and the state-owned Alaska Gasline Development Corporation, aims to transport natural gas from the North Slope for domestic use and export to Asia. Glenfarne executives have indicated that interest from energy companies could lead to $115 billion in LNG purchase commitments upon completion.
Governor Dunleavy emphasized the urgency of Alaska's need for affordable and reliable natural gas, warning that continued inaction increases risks and costs. The Trump administration had previously supported the project, viewing it as beneficial for national security and trade with allies like Japan. Japan's JERA and Tokyo Gas have signed preliminary deals to purchase a combined 2 million metric tons of LNG annually from the project, which aims to start shipping in 2031.