Iowa-based US renewable energy company Berkshire Hathaway Energy, a subsidiary of Warren Buffett’s Berkshire Hathaway, has announced its agreement with Virginia-headquartered company Dominion Energy to acquire its natural gas transmission and storage business.
The assets include over 7,700 miles of natural gas transmission lines, with approximately 20.8 billion cubic feet per day of transportation capacity, and 900 billion cubic feet of operated natural gas storage with 364 billion cubic feet of company-owned working storage capacity. It also involves a partial ownership of a liquefied natural gas export, import, and storage facility. The transaction’s enterprise value totals approximately $9.7bn.
Berkshire Hathaway’s vice chairman non-insurance operations Greg Abel said: “We are honoured to be gaining a wonderful group of employees with a wealth of experience that will continue to provide high-quality service for our customers and partners. We look forward to welcoming them to the team.
“We are fortunate [that] Dominion Energy has entrusted us to preserve and build upon such a remarkable business, that will allow Berkshire Hathaway Energy to add $9.7bn in asset value to the portfolio that currently exceeds $100bn.”
As part of the deal, Berkshire Hathaway Energy will acquire 100% of Dominion Energy Transmission, Questar Pipeline, Carolina Gas Transmission, and 50% of Iroquois Gas Transmission System.
In addition, the company will acquire 25% of Cove Point Liquified Natural Gas (LNG) – an LNG export, import, and storage facility in Maryland, US. Dominion Energy will continue to own half of Cove Point, with Brookfield Asset Management continuing to own the remaining 25% share.
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Dominion Energy chairman, president, and CEO Thomas F. Farrell, II, said: “Our talented employees maintain industry-leading operating, safety, and environmental standards to provide our customers with reliable, affordable, and safe service. They will be joining Berkshire Hathaway Energy, an excellent corporate citizen whose leadership and employees share our commitment to values-based service, safety, reliability, and community engagement.”
The transaction is subject to regulatory approvals and is expected to close in the fourth quarter of 2020.