Trump to announce $54 billion investment in Alaska LNG pipeline

President Donald Trump will announce a $54 billion investment in the proposed Alaska liquefied natural gas (LNG) pipeline on Wednesday, a White House official said. The funding, which the developer Glenfarne says is sufficient to build the entire gas line, is part of the $200 billion allocated under the U.S.–Korea Trade and Investment Initiative announced in November. The announcement is expected to take place in the Oval Office and will be attended by Alaska Governor Mike Dunleavy, Sen. Dan Sullivan, Rep. Nick Begich and several members of the Trump administration.

White House spokeswoman Taylor Rogers said the investment fulfills the president’s promise to expand U.S. energy production and develop Alaska’s resources.

"President Trump will announce major energy infrastructure investments that deliver on his day one promises to unleash American energy and unlock Alaska’s extraordinary resource potential," Rogers said.

State lawmakers, however, have not resolved a key issue: property-tax exemptions that the developer says are needed for the project’s economics. The Alaska legislature has debated a bill that would provide a tax scheme for the pipeline while also addressing a corporate income tax for privately held oil and gas firms classified as S-Corporations. The Senate passed the measure 11-8, but the House rejected it by one vote, and Governor Dunleavy indicated he would veto any version that reached his desk.

Republican lawmakers have described the corporate tax provision as a “poison pill,” and the governor has attributed the stalled tax relief to political disagreements.

"The project is fiscally challenged. What’s standing in the way is politics," Dunleavy said at a news conference.

Democratic Sen. Bill Wielechowski and Rep. Calvin Schrage said the impasse would likely push the issue to the next legislative session. The story remains developing as negotiations continue.