Dominion cancels Atlantic Coast Pipeline, sells natural gas transmission business

ACP pipeline right of way trees cut at highly sensitive location

PHOTO: Pipeline scene at Wintergreen — A path had been cleared for the Atlantic Coast Pipeline on this Blue Ridge Mountain slope at the entrance to Wintergreen resort, just below the project’s planned crossing beneath the Appalachian Trail.

The Atlantic Coast Pipeline is dead, abandoned by Dominion Energy and its partner, Duke Energy, ending a 600-mile natural gas project that would have cost at least $8 billion to complete.

Dominion and Duke announced Sunday that they have canceled the project in the face of mounting regulatory uncertainty caused by a federal court ruling in Montana that overturned the nationwide federal water quality permit the project relied upon to cross rivers, creeks and other waterbodies.

“We regret that we will be unable to complete the Atlantic Coast Pipeline,” Tom Farrell, chairman, president and CEO of Richmond-based Dominion, said in a bombshell announcement.

Dominion also announced that it is selling its natural gas transmission and storage business to Berkshire Hathaway Energy for $10 billion.

“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,” Farrell said.

However, he concluded, “This announcement reflects the increasing legal uncertainty that overhands large-scenergy 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.”

For opponents, the abandonment of the project represents vindication of grass-roots opposition that arose along the pipeline’s path.

“It’s all about the people,” said Nancy Sorrells, who helped form the Augusta County Alliance against the project in 2014 and represents the county in the Alliance of the Shenandoah Valley. “They knew it was wrong from start to finish and just never gave up.”

Rick Webb, a retired environmental scientist who helped lead the Dominion Pipeline Monitoring Coalition from his home in Highland County, said of Dominion, “They should have known better. It was a bad idea from the beginning. Dominion, with its ill-conceived project, has done a lot to strengthen the environmental community in the region,” Webb said. “Thank goodness for that.”

The grass-roots opposition also drove an aggressive legal strategy led by the Southern Environmental Law Center in Charlottesville and Appalachian Mountain Advocates, which foiled the project by persuading the 4th U.S. Circuit Court of Appeals in Richmond to throw out numerous federal and state permits needed to complete the project.

Greg Buppert, who helped lead a wide-ranging legal battle against the project as senior attorney for the Southern Environment Law Center, was stunned by the announcement. “Wow!” Buppert said Sunday. “Wow.”

The law center, based in Charlottesville, won a series of victories against federal and state permits for the Atlantic Coast Pipeline in the 4th U.S. Circuit Court of Appeals, but lost a pivotal fight in the U.S. Supreme Court last month over a permit for the pipeline to cross the Appalachian Trail in the Blue Ridge Mountains between Augusta and Nelson counties.

Dominion announced separately on Sunday that it is selling its natural gas transmission and storage business to Berkshire Hathaway by the end of the year.

Berkshire will take on $5.7 billion in debt from Dominion’s transmission and storage business — which does not reflect the parent company’s investment in the pipeline — and pay the company $4 billion, which will allow it to buy back stock to stabilize its earnings.

The sale includes more than 7,700 miles of gas pipelines and 900 billion cubic feet of gas storage. Dominion will keep a 50% interest in the Cove Point liquefied natural gas terminal on the Chesapeake Bay, but Berkshire will receive a 25% interest in the facility and operate it.

Farrell said the deal would allow the company to focus on its electric utilities in Virginia, North Carolina and South Carolina, as well as local gas distribution companies in the Carolinas, West Virginia, Ohio and Utah.

He said the company plans to invest $55 billion over the next 15 years in technologies to reduce emission of carbon dioxide and other greenhouse gases linked to global warming, retire fossil fuel power plants, and develop sources of renewable natural gas, including animal waste.

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See also: Atlantic Coast Pipeline faces doubts — As the cost of the Atlantic Coast Pipeline soars, renewable energy is the better option for NC, Ned Barnett, Raleigh News & Observer, March 16, 2020