$8 Billion Natural Gas Pipeline Cancelled, Raising Questions About Fuel’s Future

SEATTLE (Oil Monster): The ambitious Atlantic Coast Pipeline, which was to cross the Appalachian Trail and carry natural gas from underground wells in West Virginia to customers in Virginia and the Carolinas, was called off by its developers Sunday. Natural gas is a fossil fuel that’s widely considered cleaner than coal for producing electricity, but the cancellation has market analysts questioning its long-term future as a “bridge fuel” to a renewable energy future.

The developers, Duke Energy in North Carolina and Dominion Energy in Virginia, cited “an unacceptable layer of uncertainty” arising from permit challenges from environmental critics. Opponents in central Virginia feared that the blasting involved in the construction of the project would pollute waterways.

“Their efforts to hang up projects like this Atlantic Coast Pipeline in the courts just makes the execution risk too high, the investment horizon too uncertain,” said Ryan Wobbrock, energy analyst at the bond-rating firm Moody’s.

The challenges to natural gas don’t just come from environmental groups, though. Many states are reconsidering gas, given plans to go carbon neutral around 2050.

Courtesy: www.marketplace.org