Alaska LNG Project Delayed Due to Legislative Obstacles

Alaska Governor Mike Dunleavy criticized lawmakers' decision not to bring the necessary tax changes for the Alaska LNG project to a vote. According to his assessment, this could have a negative impact on investor and potential partner confidence.

The discussion concerns a project worth approximately 50 billion dollars, which involves the construction of a gas pipeline and a liquefied natural gas export terminal. Along with supplying gas to Asian markets, the project also serves to meet Alaska's domestic demand.

Dunleavy calls on lawmakers to convene on August 20 and reconsider the issue. According to Dunleavy, the problem of accessible and reliable natural gas supply in Alaska has existed for years, and further delays to the project will increase costs.

The Trump administration also supports Alaska LNG. Japan is particularly interested in the project. JERA and Tokyo Gas have concluded preliminary agreements and plan to purchase a combined 2 million tons of LNG annually.

Before the project begins, Glenfarne needs to finalize additional contracts with buyers. The company's goal is to pre-sell 80% of the planned annual 20 million tons of LNG, which is essential for project financing.

Source: Investing.com