Despite a recent victory for the project at the United States Supreme Court, ongoing delays, litigation and the projected increase in costs have threatened the economic viability of the project, the companies said on Sunday.
The pipeline, originally announced in 2014, had come under intense criticism and legal challenges from environmental groups and others.
“This announcement reflects the growing legal uncertainty that surrounds the development of large-scale energy and industrial infrastructure in the United States,” said Thomas Farrell, president of Dominion Energy, in a statement. “Until these problems are resolved, the ability to meet the country’s energy needs will be seriously challenged. ”
The companies “worked diligently and invested billions of dollars to complete the project and provide the necessary infrastructure to our customers and communities” in the years following its announcement, said Farrell.
The announcement applauded the Natural Resources Defense Council.
“This is great news for Western Virginians, Virginians and North Carolinians who deserve clean air, clean water and protection from climate change,” said lawyer Gillian Giannetti to the NRDC, in a press release.
“As they abandon this dirty pipe dream, Dominion and Duke should now pivot to invest more in energy efficiency, wind and solar – this is how we will create jobs and a better future for all” said Giannetti.
Energy Secretary Dan Brouillette blamed “activists” for canceling the pipeline.
“The well-funded obstructive environmental lobby succeeded in killing 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.