Chevron is dropping plans to build a $650 million liquefied natural gas terminal off of Mexico's West Coast near the California border.
The decision ends a four-year battle with environmentalists who feared the project would harm delicate plant, sea mammal, and bird habitats.
Chevron spokeswoman Margaret Cooper says the decision was "based on our business needs."
She says the energy company last month withdrew the three key Mexican permits required to develop the project near Mexico's Coronado Islands.
Environmentalists are claiming victory and say the terminal would have been a disaster to seabirds.
But Cooper says the company has not given up on developing an LNG facility in North America.
