Warren Buffett’s Berkshire Hathaway Energy announced on Monday it has executed an agreement to purchase Dominion Energy’s 50% stake in the Cove Point LNG, LP business. Subject to applicable regulatory approvals, the purchased interest will be held within BHE GT&S, LLC, a Berkshire Hathaway Energy business unit.
A subsidiary of BHE GT&S is also the current general partner and operator of the Cove Point natural gas pipeline and its liquefied natural gas terminal located in Lusby, Maryland. The transaction is valued at $3.3 billion. It will be funded with cash on hand including cash realized from the liquidation of certain investments.
Upon closing, Berkshire Hathaway Energy will own a 75% limited partnership stake in Cove Point LNG, LP. A subsidiary of Brookfield Infrastructure Partners holds the remaining 25% limited partnership interest in Cove Point LNG, LP.
Berkshire Hathaway Inc. first took a stake in the one-train export plant with an annual export capacity of 5.25 million tons in 2020.
GAIL India, through its American subsidiary GAIL Global USA LNG LLC, has a terminal service agreement with the Dominion for 2.3mil mt/year liquefaction capacity in the Cove Point LNG liquefaction terminal. Sumitomo Corp of Japan has another a similar terminal service agreement with Dominion Energy for 2.3mil mt/year and Sumitomo in turn supplied LNG to Tokyo Gas and Kansai Electric Power.