Atlantic Coast Pipeline project scrapped by Dominion Energy and Duke Energy

Dominion Energy and Duke Energy said that they have scrapped their $8 billion Atlantic Coast Pipeline project citing ongoing delays and increasing uncertainties in costs of the proposed 970km long natural gas pipeline project.

According to the two US energy companies, the economic feasibility of the pipeline project has been threatened as a result. The underground pipeline was to deliver natural gas sourced from West Virginia to markets in Virginia and North Carolina.

The cancellation of the Atlantic Coast Pipeline project comes in spite of the US Supreme Court overturned a lower court decision that stopped its construction.

Dominion Energy and Duke Energy said that various legal challenges to the pipeline project’s federal and state permits has resulted in considerable project cost increases and timing delays. The project cost owing to the multiple factors has jumped to $8 billion from the original estimate of $4.5-$5.0 billion.

Additionally, the US energy companies said that the most recent public estimate of starting commercial operations at the Atlantic Coast Pipeline in early 2022 marks almost a three-and- a-half-year delay.

Thomas F. Farrell, II – Dominion Energy chairman, president, and CEO, and Lynn J. Good – Duke Energy chair, president, and CEO said: “For almost six years we have worked diligently and invested billions of dollars to complete the project and deliver the much-needed infrastructure to our customers and communities. Throughout we have engaged extensively with and incorporated feedback from local communities, labor and industrial leaders, government and permitting agencies, environmental interests and social justice organizations.

“We express sincere appreciation for the tireless efforts and important contributions made by all who were involved in this essential project. 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.”