Berkshire Hathaway Inc’s subsidiary Berkshire Hathaway Energy has reportedly announced that it is planning to acquire the natural gas transmission and storage unit owned by Dominion Energy. The assets involved in the transaction comprise natural gas transmission lines extending over 7,700 miles having a transportation capacity of about 20.8 billion cubic feet per day. The deal also involves the partial accession of a liquified natural gas import, export and storage facility.
Reliable sources claim that Berkshire Hathaway Energy will acquire 100 per cent of Questar Pipeline, Dominion Energy Transmission, and Carolina Gas Transmission in addition to 50 per cent of Iroquois Gas Transmission System. The company also intends to procure 25 per cent of Cove Point LNG situated in Maryland. The particulars of the acquisition further state that Dominion Energy will retain 50 per cent stake in Cove Point and the remaining 25 per cent will remain with Brookfield Asset Management.
According to Warren Buffett, the Chairman of Berkshire Hathaway, the company highly appreciates Tom Farrell for exceptionally leading the energy industry as well as Dominion Energy. He has further stated that Berkshire is proud to add a great natural gas assets portfolio to its existing strong energy business.
The President and CEO of Dominion Energy, Thomas F. Farrell, has stated that the company’s best-in-class gas transmission and storage business has been a vital component of its success following its collaboration with Consolidated Natural Gas in 2000. He has further stated that the company’s talented employees maintain industry-leading safety, operation, and environmental standards to furnish its customers with affordable, reliable, and safe services. The company is thrilled to join Berkshire Hathaway Energy, whose employees and leadership share Dominion’s commitment to safety, reliability, value-based services, and community engagement, added Farrell.
The acquisition involves a transaction value of around $9.7 billion and will proceed subject to regulatory approval. The deal is expected to be concluded in the last quarter of 2020.