Berkshire Hathaway Energy is boosting its ownership stake in Cove Point LNG through a $3.3 billion acquisition from Dominion Energy.
Berkshire Hathaway Energy has agreed to purchase Dominion’s 50% limited partnership stake in Cove Point LNG LP, an LNG export terminal complex in Lusby, Maryland.
When the deal closes, the acquired interest will be held by Berkshire Hathaway Energy subsidiary BHE GT&S, which currently serves as the general partner and operator of Cove Point.
The transaction increases to 75% Berkshire’s ownership interest in the Cove Point LNG limited partnership, the company said in a July 10 news release. The remaining 25% limited partnership interest is held by a subsidiary of Brookfield Infrastructure Partners.
RELATED: Warren Buffett’s Berkshire Hathaway Buys Dominion Gas Business Worth Nearly $10 Billion
“We are proud of our operations at Cove Point and are excited for this opportunity to increase our ownership in these world-class facilities,” said BHE GT&S President Paul Ruppert. “The Cove Point team will continue to focus on providing safe, affordable and reliable service to its valued customers.”
The $3.3 billion deal will be funded with cash on hand, including cash realized from liquidating certain investments, Berkshire said.
In 2020, BHE acquired a 25% stake in the Cove Point LNG limited partnership through a major acquisition from Dominion. The nearly $10 billion transaction also included interstate gas transmission pipelines and gas storage capacity, according to Securities and Exchange Commission filings.
Gibson, Dunn & Crutcher LLP is advising Berkshire Hathaway Energy on the deal.
Recommended Reading
CNOOC Makes 100 MMton Oilfield Discovery in Bohai Sea
2024-03-18 - CNOOC said the Qinhuangdao 27-3 oilfield has been tested to produce approximately 742 bbl/d of oil from a single well.
TPH: Lower 48 to Shed Rigs Through 3Q Before Gas Plays Rebound
2024-03-13 - TPH&Co. analysis shows the Permian Basin will lose rigs near term, but as activity in gassy plays ticks up later this year, the Permian may be headed towards muted activity into 2025.
Proven Volumes at Aramco’s Jafurah Field Jump on New Booking Approach
2024-02-27 - Aramco’s addition of 15 Tcf of gas and 2 Bbbl of condensate brings Jafurah’s proven reserves up to 229 Tcf of gas and 75 Bbbl of condensate.
Well Logging Could Get a Makeover
2024-02-27 - Aramco’s KASHF robot, expected to deploy in 2025, will be able to operate in both vertical and horizontal segments of wellbores.
Shell Brings Deepwater Rydberg Subsea Tieback Onstream
2024-02-23 - The two-well Gulf of Mexico development will send 16,000 boe/d at peak rates to the Appomattox production semisubmersible.