Duke Energy, Dominion Cancel $8 Billion Atlantic Coast Pipeline Project

Duke Energy and Dominion Energy announced Sunday it will be cancelling the controversial Atlantic Coast Pipeline project, "due to ongoing delays and increasing cost uncertainty which threaten the economic viability of the project."

The $8 billion project was to put a 600-mile natural gas pipeline in North Carolina, Virginia and West Virginia. A portion of that pipeline project was scheduled to run through the greater Fayetteville region, roughly along Interstate 95.

Gov. Roy Cooper issued a statement Sunday afternoon on the cancellation: "This decision and the changing energy landscape should lead to cleaner and more reliable energy generation in North Carolina. Our Clean Energy Plan provides an excellent framework and stakeholder process for renewable energy moving forward."

"We regret that we will be unable to complete the Atlantic Coast Pipeline," Thomas F. Farrell, II, Dominion Energy chairman, president, and chief executive officer, and Lynn J. Good, Duke Energy chair, president, and chief executive officer, said in a joint statement. "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."

The pipeline project had faced legal challenges from the start, including right-of-way issues, and a host of other regulatory hurdles. Duke and Dominion had argued the pipeline was critical for the East Coast, as reliance on coal has been reduced.

"Every minute in America, a new customer signs up for natural gas service," the companies said on their combined AtlanticCoastPipeline.com website. "However, the natural gas pipelines serving the lower Mid-Atlantic region are fully tapped and unable to keep up with residential and business demand. The need for the Atlantic Coast Pipeline is real and the need is now."

It was expected to bring 17,240 new construction industry jobs, and 2,200 new jobs in related fields, according to Dominion.