Berkshire Hathaway Energy has closed on the purchase of Dominion Energy’s 50 percent interest in limited partnerships in Cove Point LNG LP, bringing its total ownership to 75 percent, the two companies said in separate press releases .
The final purchase price was $3.3 billion and all customary closing conditions were met, Dominion Energy said. In addition, Dominion Energy will receive proceeds of $0.2 billion from the settlement of related interest rate derivatives, according to its statement. The deal was announced in July.
The stake is held in BHE GT&S LLC, a business unit of Berkshire Hathaway Energy, the company said. A subsidiary of BHE GT&S is the general partner and operator of the Cove Point natural gas pipeline and its liquefied natural gas (LNG) terminal located in Lusby, Maryland. An affiliate of Brookfield Infrastructure Partners owns the remaining 25 percent of the limited partnership’s interest in Cove Point LNG, Berkshire Hathaway Energy said.
Cove Point LNG is a two-way LNG facility on the western shore of the Chesapeake Bay and is served by an associated pipeline system in Virginia and Maryland. The facility has 14.6 billion cubic feet (Bcf) of on-site storage.
“We are excited about this opportunity to take a larger stake in the Cove Point LNG business. BHE GT&S will continue its excellent operational and commercial performance at Cove Point, which plays an important role in delivering clean energy solutions, low-cost and sustainable Berkshire Hathaway Energy to customers and communities,” said Paul Ruppert, President of BHE GT&S.
BHE GT&S is an interstate natural gas transmission and storage company headquartered in Richmond, Virginia and an indirect subsidiary of Berkshire Hathaway Energy. The company currently operates 5,400 miles of transmission pipeline in the eastern United States and has 756 Bcf of total natural gas storage capacity, with 420 Bcf of working gas capacity and natural gas gathering and processing assets, according to Berkshire Hathaway Energy.
BHE GT&S’s operations, through its ownership of Eastern Energy Gas Holdings, include three interstate natural gas pipeline systems, one of the nation’s largest underground natural gas storage systems, and a export, import and storage of LNG, according to Berkshire Hathaway Energy. The company’s operations also include smaller LNG facilities and a gathering and processing company, according to the company’s website. Aside from Cove Point LNG, BHE GT&S’ subsidiary operating companies include Carolina Gas Transmission, Eastern Gas Transmission and Storage, Eastern Gathering and Processing, Pivotal LNG, in which it owns 90 percent, and JAX LNG, in which it owns of 50 percent.
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