Stalled Alaska LNG pipeline bill sends 'negative signal,' governor says

By Timothy Gardner and Curtis ‌Williams

WASHINGTON, Aug 13 (Reuters) - ​Alaska Governor ​Mike Dunleavy said he was "deeply disappointed" that a bill to advance a pipeline for the Alaska LNG project to export natural gas to Asia ‌stalled in the state legislature.

Dunleavy said in a post on X late ⁠on Wednesday that 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.

"Alaska is running out of affordable, reliable natural gas," Dunleavy said. "This is a long-standing issue that has grown more urgent over ⁠decades of inaction. Delaying action only increases risk, raises costs, and limits future options."

KTUU reported Dunleavy was 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.

Glenfarne, the lead developer, did not immediately respond to ⁠a request for comment.

The war in the Middle East is spurring interest in Asia for gas from Alaska LNG, Glenfarne executives said in March. 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.

Final approvals for the project's pipeline and export terminal ‌are delayed as 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. It needed agreements ​for another 3 million tons, and to make all commitments binding to line up financing, they said.

(Reporting by Curtis Williams and Timothy GardnerEditing by ‌Rod Nickel)

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