Alaska Governor Warns Stalled LNG Bill Sends Negative Signal to Investors

Alaska Governor Mike Dunleavy has voiced deep disappointment after the state legislature failed to reconvene and vote on a tax change essential to the proposed $50 billion Alaska LNG export project. In a statement on social media, he warned that the inaction sends a negative signal to investors and potential partners at a critical juncture for the venture.

The project, which includes a pipeline and an export terminal, is designed to ship natural gas to Asian markets while also boosting domestic supply. Dunleavy stressed that Alaska is facing an increasingly urgent shortage of affordable and reliable natural gas, a problem he says has been compounded by decades of delay. He argued that further postponement only heightens risks, inflates costs, and narrows future options.

Local reports indicate that legislators cited insufficient support for the bill, prompting Dunleavy to call on them to reconvene on August 20 for a vote. The Trump administration has championed the Alaska LNG project as a means to strengthen national security and deepen trade ties with allies, including Japan.

Glenfarne, the lead developer, has been working to secure binding agreements from buyers. The company aims to make final investment decisions this year and next, with initial LNG exports targeted for 2031. Interest in the project has been bolstered by instability in the Middle East, according to company executives. Japanese firms JERA and Tokyo Gas have already signed preliminary deals to purchase a combined 2 million metric tons annually.

However, final approvals remain pending as Glenfarne has yet to secure binding offtake agreements for 80% of the planned 20 million tons per year export capacity. In March, the company reported commitments for 13 million tons annually, needing an additional 3 million tons and to convert all agreements into binding contracts to secure financing.