PA Chamber expresses disappointment with termination of Atlantic Coast Pipeline project

Following the unexpected cancellation of the proposed Atlantic Coast Pipeline project over the July 4 weekend, PA Chamber of Business and Industry President and CEO Gene Barr cited it is another example of how challenging it is to build critical energy infrastructure in today’s economy.

“Now, more than ever, state and federal lawmakers must enact and support reforms that will encourage infrastructure development in the United States,” Barr said. “Unfortunately, as the reaction to this news from some environmental groups shows, there is a small but vocal group of voices who are pleased to see the cancellation of a project that would have employed thousands of Americans at time when economic growth is needed more than ever – and that would have supported energy jobs in the Appalachian region, lowered energy bills for businesses and manufacturers in the mid-Atlantic, and reduced emissions as well.”

The 600-mile Atlantic Coast Pipeline was envisioned as a means of delivering gas from West Virginia into Virginia and North Carolina, with an estimated 1.5 billion cubic feet of gas delivered per day.

Project leaders Dominion Energy and Duke Energy released a joint statement last week noting that legal uncertainty around large-scale energy and industrial infrastructure development had already delayed the project more than three years and nearly doubled its initial cost.

“Until these issues are resolved, the ability to satisfy the country’s energy needs will be significantly challenged,” said the statement from Thomas F. Farrell, president, chairman and CEO of Dominion Energy, and Lynn Good, Duke Energy chair, president and CEO.

Additionally, Barr said that oil and gas feedstocks are crucial components of the materials necessary to manufacture personal protective equipment – equipment that has been in high demand and short supply for healthcare professionals and front line workers amid the COVID-19 pandemic.

“While we respect the decision of the project sponsors, we vehemently oppose the kitchen-sink tactics deployed by obstructionists to block construction of major projects in this country,” Barr said. “It bears reminding that similar obstruction to infrastructure development in the Northeast led to New England importing Russian gas, despite nearby Pennsylvania boasting some of the most prolific gas wells in the world. At the same time, as intelligence and Congressional reports have noted, Russia has sown discord on social media to disparage domestic energy development, and has funded activism in an attempt to erode support for projects like this.”

Barr called for significant congressional reform around the statutes governing the construction of energy infrastructure in order to obtain a crucial, long-term position within strong energy security and economic growth.