August 11, 2020 Read More →

Duke Energy takes $1.6 billion charge to account for cancelled Atlantic Coast gas pipeline project

Reuters:

U.S. energy company Duke Energy Corp said Monday it took a $1.6-billion after-tax charge in the second quarter for the cancellation of the Atlantic Coast natural gas pipeline from West Virginia to North Carolina.

Atlantic Coast was the most expensive U.S. gas pipeline under construction when Duke and partner Dominion Energy Inc exited the $8-billion project in July due to regulatory uncertainty following years of delays and billions of dollars of cost overruns.

Dominion already took a $2.8 billion charge related to the cancellation.

Atlantic Coast is just one of several U.S. oil and gas pipelines mired in legal and regulatory battles with local and environmental groups that have found problems with U.S. permits issued by Trump administration agencies.

When Dominion, which led the Atlantic Coast project, started work on the 600-mile (966-km) pipe in the spring of 2018, the company estimated it would cost $6.0-$6.5 billion and be completed in late 2019.

In addition to regulatory delays, Atlantic Coast was also hurt by a short-term hit to gas demand from coronavirus and a longer-term hit from growing consumer interest in cleaner energy.

[Scott DiSavino]

More: Duke takes $1.6 billion charge to exit Atlantic Coast nat gas pipe

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