The transaction also includes acquisition of 25% stake of Cove Point LNG facility in Maryland
Berkshire Hathaway’s subsidiary Berkshire Hathaway Energy has agreed to acquire Dominion Energy’s natural gas transmission and storage business in a deal valued at $9.7bn.
Under the deal, Berkshire will acquire more than 12,392km of natural gas transmission lines, with about 20.8 billion cubic feet per day of transportation capacity.
It will also include 900 billion cubic feet of operated natural gas storage with 364 billion cubic feet of company-owned working storage capacity as well as the partial ownership of a liquefied natural gas export, import and storage facility.
The transaction includes acquisition of 100% stake in Dominion Energy Transmission, Questar Pipeline and Carolina Gas Transmission as well as the 50% stake in Iroquois Gas Transmission System.
Atlantic Coast Pipeline is not part of the acquisition
Berkshire Hathaway Energy president and CEO Bill Fehrman said: “This premier natural gas transmission and storage business has been operated and managed in a best-in-class manner.
“Acquiring this portfolio of natural gas assets considerably expands our company’s footprint in several Eastern and Western states as well as globally, increasing the market reach and diversity of Berkshire Hathaway Energy.”
The transaction includes the assumption of around $5.7bn of existing indebtedness that will reduce Dominion Energy’s total leverage.
Upon closing, Berkshire will also make a cash payment of around $4bn to Dominion Energy.
The firm said that the deal does not include purchase of the Atlantic Coast Pipeline.
The deal also includes acquisition of 25% stake of Cove Point LNG – an LNG export, import and storage facility in Maryland, while Dominion Energy will own the 50% of Cove Point.
Brookfield Asset Management will continue to own the remaining 25% share in the LNG facility.
Once the transaction is closed, Berkshire Hathaway Energy will operate the Cove Point facility, which is one of six LNG export facilities in the US.
Furthermore, the deal is subject to regulatory approvals and is expected to be closed in the fourth quarter of the year.