Berkshire Hathaway to acquire Dominion’s gas transmission business

Warren Buffett’s Berkshire Hathaway has signed a definitive agreement to purchase the natural gas transmission and storage assets of US-based energy transmission and production firm Dominion Energy.

Dominion’s assets under the sale include about 7,700 miles of natural gas transmission lines, with around 20.8 billion cubic feet per day (bcf/d) of transportation capacity and 900bcf of operated natural gas storage.

The deal would transfer more than 364bcf of company-owned working storage capacity, plus partial ownership of an LNG export and import and storage facility from Dominion to Berkshire.

The deal is valued at about $9.7bn.

Berkshire Hathaway chairman Warren Buffett said: “I admire Tom Farrell for his exceptional leadership across the energy industry, as well as within Dominion Energy.”

Under the transaction, Berkshire Hathaway Energy will buy 100% of Dominion Energy Transmission, Questar Pipeline and Carolina Gas Transmission, as well as 50% of the Iroquois gas transmission system.

Dominion’s Atlantic Coast Pipeline is not a part of the sale.

Dominion Energy chairman, president and CEO Thomas F Farrell said: “Dominion Energy’s best-in-class gas transmission and storage business has been a major component of our success since we merged with Consolidated Natural Gas in 2000.

“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.”

Expected to be closed in the fourth quarter of the year, the transaction is subject to necessary regulatory approvals.

In October last year, Dominion Energy signed an agreement with Brookfield Super-Core Infrastructure Partners to sell a 25% stake in Cove Point for more than $2bn in cash.

In February 2019, Dominion Energy committed to reducing methane emissions from its natural gas infrastructure by 50% by 2030.