A bill about the construction of a pipeline for liquefied natural gas has failed to secure sufficient votes in the state’s legislature, prompting a sharp reaction from Governor Mike Dunleavy who was behind the bill.
“The Legislature’s decision to not return to Juneau to take action on the proposed property tax change needed to advance the Alaska natural gas pipeline project is deeply disappointing and has consequences that extend well beyond this session,” Governor Dunleavy wrote on X, after the Alaska House Majority Coalition announced late on Wednesday that they had secured enough votes to greenlight the project.
“Alaska is running out of affordable, reliable natural gas. 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,” Dunleavy also said.
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The Alaska LNG pipeline is a vital element of the same-name liquefied natural gas production project designed to deliver North Slope natural gas to Alaskans and export LNG to U.S. allies across the Pacific.
The 800-mile pipeline is planned to transport the gas from the production centers in the North Slope to south-central Alaska for exports. In addition, multiple gas interconnection points will ensure meeting in-state gas demand.
The Alaska LNG project is a joint venture between U.S. energy developer Glenfarne Group and Alaska Gasline Development Corporation, a company owned by the state of Alaska. Energy companies are ready to commit to buying $115 billion worth of LNG from Alaska once President Donald Trump’s pet energy project gets done, Glenfarne said in June, noting that as many as 50 companies have expressed formal interest.
Alaska’s governor noted the legislature’s failure to move the pipeline project forward would send “a negative signal to investors and potential partners in Alaska, the nation, and around the world. Large infrastructure projects require certainty and sustained commitment.”
By Michael Kern for Oilprice.com
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