For $3.3 billion, Berkshire Hathaway Energy has agreed to purchase Dominion Energy Inc.’s share of a liquefied natural gas export project in Maryland.
Warren Buffett’s Berkshire said in a statement on Monday that the agreement will increase the company’s limited partnership ownership of the terminal to 75%, with a division of Brookfield Infrastructure Partners holding the remaining 25%.
In 2020, Berkshire Hathaway Inc. initially acquired a share in the one-train export facility with a 5.25 million ton annual export capacity.
In a time when LNG has grown in economic and geopolitical significance, the transaction will give Berkshire ownership of one of just seven active US facilities that can export LNG. Following the invasion of Ukraine in 2022, natural gas prices skyrocketed, and US shipments of the fuel’s liquefied form helped to support Western European economies after Russia curtailed supplies.
Long-term contracts for Cove Point LNG are in place with businesses like Tokyo Gas Co. and Sumitomo Corp.
In a different statement, Dominion stated that it will use the money to pay off debt. In the third quarter, Dominion, which has been undertaking a business assessment, intends to host an investor day to provide an updated strategic and financial perspective.
Holding firm Berkshire Hathaway Energy is 92% owned by Berkshire Hathaway. Since 1999, Berkshire has held a controlling interest. The corporation also has control of power distribution businesses in Canada and the UK. The family of Walter Scott Jr. owns the remaining 8%.