Despite a recent victory on the project at the U.S. Supreme Court, persistent delays, litigation and expected cost increases have threatened the economic viability of the project, the companies announced on Sunday.
The pipeline, originally announced in 2014, has faced intense criticism and legal challenges from environmental and other groups.
“This announcement reflects the growing legal uncertainty that surpasses the development of large-scale energy and industrial infrastructure in the United States,” Thomas Farrell, chairman of Dominion Energy, said in a statement. “Until these issues are resolved, the country’s ability to meet its energy needs will be significantly compromised.”
Companies have “worked diligently and invested billions of dollars to complete the project and deliver much-needed infrastructure to our customers and communities” in the years since it was announced, Farrell said.
The announcement brought fans from the Natural Resources Council.
“This is great news for West Virginians, Virginians and North Carolinians who deserve clean air, safe water and protection from climate change,” said Gillian Giannetti, an attorney from the NRDC.
“After giving up on the dirty pipe dream, Dominion and Duke should now turn to investing more in energy efficiency, wind and solar energy – that’s how to secure jobs and a better future for everyone,” Giannetti said.
U.S. Secretary of Energy Dan Brouillette blamed the “activists” for the pipeline’s failure.
“A well-funded obstructive lobby has successfully killed the Atlantic coastline pipeline, reducing 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.