Daily Management Review

Atlantic Coast Pipeline gas project closed in the US amid delays and price risks


The Atlantic Coast Pipeline (ACP) gas pipeline project is closed amid uncertainty with prices and regulation, the project’s organizers Dominion Energy and Duke Energy said in a press release.

"Despite a convincing victory in the Supreme Court - seven for, two against - which confirmed the viability of the project and the decisions of regulators, recent events and expected delays created an unacceptable level of uncertainty for ACP," the company said in a statement.

In particular, the companies refer to other court decisions on other projects that show the risk of environmental lawsuits for such projects.

Permanent lawsuits demanding a change in the pipeline’s route have already increased its cost from $ 4.5-5 billion to at least $ 8 billion, the companies remind. In their opinion, further investments in the project are not viable.

The project was canceled despite the victory in the Supreme Court, which lifted environmental objections to the construction of the Appalachian Trail - a popular walking route that runs 3,500 kilometers along the mountains of the Atlantic coast of the United States.

The aim of the project was to transport natural gas from West Virginia to ports on the Atlantic Ocean.

source: bloomberg.com