Dominion Midstream Partners has acquired Dominion Carolina Gas Transmission from Dominion Resources for about $495m.
Dominion Midstream is giving $200m worth of partnership units to Dominion Resources. The company will pay the remaining $295m owed in the next two years.
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The acquisition is anticipated to be immediately accretive to Dominion Midstream’s distributed cash-flow per unit.
Dominion Carolina Gas Transmission owns and operates around 1,500 miles of natural gas pipeline in South Carolina and south-eastern Georgia.
Dominion and Dominion Midstream chairman, president and chief executive officer Thomas Farrell II said: "Today’s asset contribution demonstrates Dominion’s and Dominion Midstream’s ability to execute complementary acquisitions to augment our dropdown strategy to achieve targeted best-in-class distribution growth at Dominion Midstream."
Dominion Resources formed Dominion Midstream in March 2014 to own, operate, develop and acquire natural gas import, storage, regasification, transportation and associated assets.
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By GlobalDataThe initial asset owned by Dominion Midstream is a preferred equity interest in the Cove Point LNG facility.
The Cove Point LNG Liquefaction project, which is expected to cost between $3.4bn and $3.8bn, will have the capacity to export up to 5.75mt of LNG a year.
Upon its completion in late 2017, Cove Point will produce about 5.25 million tonnes of liquefied natural gas annually for the two customers.
