The company said the lack of needed permits from New Jersey made it determine that “further development of the Project no longer is supported.”

An agreement with the New Jersey Attorney General’s office means PennEast won’t take the lands to build the pipeline, even though the U.S. Supreme Court ruled it could use eminent domain to acquire the state land for the project.

The ruling reverses a the Third Circuit Court of Appeals decision that held New Jersey could block construction on conservation land. Industry praised the decision; PennEast opponents vowed to continue their fight.

New Jersey wants to block the project, saying the constitution bars the private company from seizing state-controlled land through eminent domain.

PennEast wants the Supreme Court to overturn a federal appeals court ruling preventing the company from exercising eminent domain on NJ state lands.