Following the deal, Berkshire Hathaway Energy has increased its total ownership interest in the American liquefied natural gas project to 75%, which includes the 25% operating stake it already holds through its subsidiary, BHE GT&S
Dominion Energy exits Cove Point LNG project in a $3.3bn deal with Berkshire Hathaway Energy. (Credit: jpenrose from Pixabay)
Berkshire Hathaway Energy has closed the previously announced $3.3bn acquisition of Dominion Energy’s 50% limited partnership stake in the Cove Point LNG project in Maryland, US.
Following the deal, Berkshire Hathaway Energy has taken its total ownership interest in the liquefied natural gas (LNG) project to 75%. Prior to the deal, Berkshire Hathaway Energy had a 25% operating stake through its subsidiary BHE GT&S.
The remaining 25% stake in the Cove Point LNG project is owned by a subsidiary of Brookfield Infrastructure Partners.
BHE GT&S president Paul Ruppert said: “We are pleased for this opportunity to own a greater stake in the Cove Point LNG business. BHE GT&S will continue its excellent operating and commercial performance at Cove Point, which plays an important role in Berkshire Hathaway Energy’s delivery of clean, low-cost and sustainable energy solutions to customers and communities.”
The all-cash deal was announced in July 2023. Apart from the consideration, Dominion Energy will realise proceeds of $200m from the settlement of related interest rate derivatives.
At the time of disclosing the deal, Dominion Energy said that the total post-tax proceeds from the deal are expected to be used for debt repayment. This includes the existing term loan of $2.3bn obtained by its non-controlling interest in the Cove Point LNG project.
The Cove Point LNG terminal has a storage capability of 14.6 billion cubic feet (BCF) along with a daily send-out capacity of 1.8BCF.
It is linked to the primary Mid-Atlantic gas transmission networks, including Transcontinental Gas Pipeline, Columbia Gas Transmission, and Eastern Gas Transmission and Storage, through its dedicated pipeline infrastructure.
Located on the western shore of the Chesapeake Bay, the bidirectional liquefied natural gas facility began exports in Spring 2018 to serve 28 countries.