Dominion Energy, the nation’s biggest energy company, announced it was pulling out of its planned $2 billion deal with a Texas energy company to build a natural gas liquefaction plant.
Dominion Energy CEO James Gallagher said in a news release that he was disappointed by the company’s decision.
“I was disappointed that Dominion Energy chose to exit the transaction with Dominion Energy LNG in light of the company continuing to pursue alternative energy sources and the economic impacts of such alternatives,” he said.
“We remain committed to investing in natural gas in Texas, but the economic and environmental impacts of a large-scale LNG terminal are a challenge for any energy company.”
Dominion Energy and the Energy Department are working on a new deal to build the liquefied natural gas terminal in Austin, Texas.
The deal is expected to close this month.
Dominion said it will focus on producing natural gas from existing natural gas production in the United States.
It also said it would invest in other technologies, including new coal plants and more wind and solar farms.
Dominion, the world’s largest natural gas producer, is in a fight with Texas Energy for a lease on the project.
Dominion will also have to find money to pay off debt owed to Texas Energy.
Dominion has not released its financial results for the fiscal year ending June 30.
Dominion declined to comment further.
The company said in its news release it plans to invest $5.6 billion to develop its energy resources in Texas and around the world.
Dominion is the nation, third largest natural-gas producer in the world and has a market value of more than $50 billion.