Alaska Governor Mike Dunleavy expressed deep disappointment after state lawmakers failed to reconvene and vote on critical tax legislation needed to move a proposed $50 billion natural gas pipeline and export terminal forward.

In a post on social media late Wednesday, Dunleavy warned that the legislature’s inaction on the Alaska LNG project sends a negative signal to prospective investors and international partners.

The stalled bill proposed specific tax adjustments required to secure financing for the massive pipeline, which would transport natural gas across the state for both local use and export to Asian markets.

"Alaska is running out of affordable, reliable natural gas," Dunleavy said, calling the shortage a long-standing issue compounded by decades of inaction. "Delaying action only increases risk, raises costs, and limits future options."

Local news station KTUU reported that legislative leaders cited a lack of overall support for declining to hold a vote this session. However, Dunleavy is now urging lawmakers to reconvene on Aug. 20 to reconsider the pipeline measure.

The $50 billion venture features an 800-mile pipeline designed to deliver natural gas from Alaska’s North Slope to an export facility in Southcentral Alaska. Proponents argue the pipeline would bolster domestic energy security while supplying key allies in Asia.

The project has received strong backing from federal officials, who view it as a strategic trade asset, particularly for nations such as Japan. Japanese energy giants JERA and Tokyo Gas have already signed preliminary agreements to purchase a combined 2 million metric tons of liquefied natural gas annually.

Lead developer Glenfarne Energy Transition aimed to reach final investment decisions between this year and next, targeting initial gas shipments by 2031. However, progress remains tied to securing binding agreements.

While Glenfarne executives previously reported commitments for 13 million metric tons per year, the firm must secure non-binding agreements for an additional 3 million tons and convert 80% of total capacity into binding contracts to finalize project financing.

Neither the White House, the Department of Energy, nor Glenfarne immediately responded to requests for comment.