Contested $8B natural gas pipeline canceled
RICHMOND, Va. — Developers of the Atlantic Coast Pipeline announced Sunday that they are canceling the multi-state natural gas project, citing delays and increasing cost uncertainty.
Despite a victory last month at the U.S. Supreme Court over a critical permit, Dominion Energy and Duke Energy said in a news release that “recent developments have created an unacceptable layer of uncertainty and anticipated delays” for the $8 billion project designed to cross West Virginia and Virginia into North Carolina.
“This announcement reflects the increasing legal uncertainty that overhangs large-scale energy and industrial infrastructure development in the United States. Until these issues are resolved, the ability to satisfy the country's energy needs will be significantly challenged,” Dominion CEO Tom Farrell and Duke CEO Lynn Good said in a joint statement.
The project announced in 2014 has drawn fierce opposition from a coalition of landowners, activists and environmental advocates, who said it would damage pristine landscapes and harm wildlife. They also questioned whether there was sufficient need for the gas it would carry and said it would further encourage the use of a fossil fuel at a time when climate change makes a shift to renewable energy imperative.
Legal challenges brought by environmental groups prompted the dismissal or suspension of numerous permits and led to an extended delay in construction.
Separately, Richmond, Virginia-based Dominion, which serves more than 7 million customers in 20 states, announced it had agreed to sell “substantially all” its gas transmission and storage segment assets to an affiliate of Berkshire Hathaway. The transaction was valued at $9.7 billion, the company said.