New York — Berkshire Hathaway Energy has executed a definitive agreement to buy Dominion Energy's natural gas transmission and storage business in a deal with an enterprise value of approximately $9.7 billion, including the assumption of $5.7 billion of existing debt.
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The agreement does not include acquisition of the Atlantic Coast Pipeline project, which Dominion and its ACP partner Duke Energy canceled on July 5, the same date as the deal.
As part of the transaction, the Berkshire Hathaway subsidiary will acquire 100% of Dominion Energy Transmission, Questar Pipeline and Dominion Energy Carolina Gas Transmission; and 50% of Iroquois Gas Transmission System.
The deal also includes 25% ownership of Cove Point LNG, an export, import and storage facility in Maryland. Dominion will continue to own 50% of Cove Point, with Brookfield Asset Management continuing to own the remaining 25% share. Berkshire Hathaway Energy will operate the facility once the transaction closes.
The assets cover more than 7,700 miles of gas transmission lines, with about 20.8 Bcf/d of transportation capacity and 900 Bcf of operated gas storage, with 364 Bcf of company-owned working storage capacity. The gas assets are majority located on the U.S. East Coast.
The transaction is expected to close in the fourth quarter of 2020.
Earlier this year, Dominion set its sights on achieving net-zero emissions across its power and natural gas operations by significantly ramping up investments in renewable energy. Selling its gas transmissions and storage business may help the company's ambitions of cutting carbon dioxide and methane emissions significantly.