The acquisition includes more than 5,500 miles (8,851km) of interstate gas transmission pipelines
Dominion Energy has announced the completion of the the sale of the majority of its gas transmission and storage assets to Berkshire Hathaway Energy, an affiliate of Berkshire Hathaway.
The assets have been sold for or approximately $2.7bn in cash and the transaction also includes the transfer of approximately $5.3bn of related indebtedness.
The acquisition includes more than 5,500 miles (8,851km) of interstate gas transmission pipelines and about 775 billion cubic feet (Bcf) of gas storage.
It also includes 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.
With the transaction is now closed, Berkshire Hathaway Energy will operate the Cove Point facility, which is one of six LNG export facilities in the US.
Dominion Energy to reduce its debt by about $6bn with the sale
Dominion Energy is also selling its stake in Questar Pipelines to Berkshire Hathaway Energy. The deal is expected to be completed by early 2021 after the receipt of Hart-Scott-Rodino clearance.
The company has already received a cash payment of about $1.3bn for of the sale. Upon completion of the follow-up transaction, approximately $430m of related debt will be transferred to Berkshire Hathaway Energy.
The transactions are expected to reduce Dominion Energy’s debt by nearly $6bn.
Headquartered in Richmond, Virginia, Dominion Energy serves more than 7 million customers in 16 states with electricity or natural gas.