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Alaska LNG Pipeline Bill Dies in Legislature, Governor Fires Back

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…

The Alaska legislature has failed to pass a bill for the construction of the state's proposed liquefied natural gas pipeline, leading Governor Mike Dunleavy to express disappointment. The majority leader secured enough votes to advance the project in the Alaska House, but the decision not to reconvene in Juneau to take action has consequences beyond this session.

Governor Dunleavy emphasized the urgency of the issue, stating that Alaska is running low on affordable, reliable natural gas and that delaying action increases risks, raises costs, and limits future options. The 800-mile pipeline is part of a larger liquefied natural gas production project aimed at delivering North Slope gas to Alaskans and exporting to U.S. allies through the Pacific.

The project is a joint venture between the U.S. energy developer Glenfarne Group and Alaska Gasline Development Corporation, a state-owned company. Energy companies are prepared to commit to purchasing $115 billion worth of LNG from Alaska once the project is completed, with multiple companies expressing formal interest. Governor Dunleavy warned that the legislature's failure to move the pipeline project forward could send a negative signal to investors and potential partners, both nationally and internationally, as large infrastructure projects require certainty and sustained commitment.

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