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Alaska Governor Warns Gas Shortage Risks as Pipeline Action Stalls in Alaska Legislature

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Alaska Governor Mike Dunleavy said Thursday he was "deeply disappointed" by lawmakers' decision to delay action on a property tax change needed to advance the state's natural gas pipeline project, warning of higher risks and costs.

In a post on X, Dunleavy said, "Alaska is running out of affordable, reliable natural gas," calling the shortage a long-standing issue that has grown more urgent after decades of inaction.

The governor said delaying the proposed measure could affect households and major institutions across the state, including military installations, schools, hospitals, universities and businesses that depend on reliable and affordable energy.

"Reliable, affordable energy is essential to Alaska's economic stability and quality of life," Dunleavy said, adding that a delay "increases risk, raises costs, and limits future options."

Dunleavy also warned that the legislature's decision could weaken investor confidence in Alaska, the US and overseas, as large infrastructure projects require certainty and sustained commitment.

"We will continue to pursue all viable options to advance the Alaska natural gas pipeline project," Dunleavy said, describing reliable and affordable energy as both an economic necessity and a responsibility to current and future generations.

Alaska LNG project aims to expand access to gas for domestic use while supporting LNG exports to Asia. Japan's JERA and Tokyo Gas have signed preliminary agreements to buy a combined 2 million metric tons per year, while the project targets 20 million metric tons per year in exports, according to a Reuters report.

Lawmakers are being urged by Dunleavy to reconvene Aug. 20 to vote on the proposed measure, the report added citing KTUU.

The White House and the US Department of Energy did not immediately reply to' request for comment.

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