Dominion Energy has signed a definitive agreement to sell its 50% non-controlling limited partner stake in the Cove Point liquefied natural gas (LNG) facility to Berkshire Hathaway Energy in a cash deal worth $3.3bn.
The acquired interest will be owned by BHE GT&S, a division of Berkshire Hathaway Energy, which currently operates the facility in Chesapeake Bay, Maryland, US.
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The facility comes with a storage capacity of 14.6 billion cubic feet and supplies LNG to supplant coal-fired power plants.
Berkshire Hathaway Energy will own a 75% limited partnership investment in Cove Point LNG after the transaction concludes, which is subject to standard closing conditions.
The remaining 25% of Cove Point LNG’s limited partnership interest is held by a subsidiary of Brookfield Infrastructure Partners.
BHE GT&S president Paul Ruppert said: “We are proud of our operations at Cove Point and are excited for this opportunity to increase our ownership in these world-class facilities.
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By GlobalData“The Cove Point team will continue to focus on providing safe, affordable and reliable service to its valued customers.”
Dominion Energy stated that it plans to pay off debt with the proceeds of the sale, including the existing $2.3bn term loan secured by its non-controlling interest in Cove Point.
Dominion Energy chair, president and CEO Robert Blue said: “Since 2002, Cove Point has been an excellent service provider to its international and domestic customers – linking global gas supplies with American customers, and American gas supplies with customers around the world.
“However, this investment is non-core to Dominion Energy as we focus on our state-regulated utility operations. The sale demonstrates our commitment to the company’s credit profile and represents an attractive exit from what has been an excellent investment for our shareholders.”
