Dominion to sell gas storage, transmission for $9.7bn
Dominion Energy has agreed to sell its natural gas storage and transmission assets to Berkshire Hathaway in a $9.7bn deal that will allow Dominion to pursue its state-regulated utility business.
The deal includes the Dominion Energy Transmission system, Questar pipeline and the Carolina Gas Transmission system, as well as a 50pc stake in the Iroquois Gas Transmission system. Berkshire will also acquire a 25pc stake in the Cove Point LNG export terminal in Maryland.
As part of the deal, Berkshire will assume $5.7bn of Dominion's debt.
The assets comprise more than 7,700 miles of gas pipelines that can move 20.8 Bcf/d and 900 Bcf of operated gas storage assets in the northeast and Rocky Mountains.
Dominion will retain a 50pc share of the 5.75mn t/yr Cove Point terminal, but Berkshire will operate the facility once the transaction is completed. The deal is expected to close in the fourth quarter, pending regulatory approvals.
"This transaction represents another significant step in our evolution as a company, allowing us to focus even more on fulfilling utility customer needs," Dominion chief executive Thomas Farrell said.
The bulk of Dominion's future earnings will come from its state-regulated natural gas and electric utilities in Virginia, the Carolinas, Ohio and Utah. Dominion's stake in Cove Point and its solar and nuclear generation will be the only key exceptions, the company said.
Dominion and Duke Energy, the developers of the $8bn, 1.4 Bcf/d Atlantic Coast pipeline, canceled that project today following years of permitting delays.