Vermont Gas has announced that it is not going through with the second phase of a natural gas pipeline that would have crossed underneath Lake Champlain to International Paper Ticonderoga Mill in New York.
The company said Tuesday that it had recently reviewed the costs and say the second phase is no longer viable.
The updated cost estimate for phase two is $105 million compared to an earlier estimate of $74 million.
Last year, Vermont Gas announced two cost increases, prompting the Vermont Public Service Board to investigate further. The board recently asked for an updated cost estimate for phase two.
The first phase of the pipeline is designed to reach Vergennes, Middlebury and other communities.