Despite a recent victory for the US Supreme Court project, ongoing delays, litigation, and an expected increase in costs threatened the economics of the project, the companies said on Sunday.
The pipeline, which was originally announced in 2014, has been subjected to severe criticism and legal challenges from environmental and other groups.
“This announcement reflects the increasing legal uncertainty that is exceeding the large-scale development of energy and industrial infrastructure in the United States,” said Thomas Farrell, chairman of Dominion Energy, in a statement. “Until these problems are resolved, the ability to meet the country̵
The companies have “worked hard and invested billions of dollars to complete the project and provide the much-needed infrastructure to our customers and communities in the years since their announcement,” said Farrell.
The announcement was applauded by the Defense Council for Natural Resources.
“This is huge news for West Virginia, Virginians and North Carolinians who deserve clean air, water and protection from climate change,” said Gillian Giannetti, a lawyer with the NRDC, in a statement.
“If they give up this dream of dirty pipes, Dominion and Duke should now invest more in energy efficiency, wind and sun – this can create jobs and a better future for everyone,” said Giannetti.
US Energy Secretary Dan Brouillette blamed “activists” for the pipeline’s cancellation.
“The well-funded, obstructive environmental lobby has successfully killed the Atlantic Coast pipeline, which would have reduced energy costs for consumers in North Carolina and Virginia by providing them with an affordable, abundant, and reliable supply of natural gas from the Appalachian region.” he said.