Warren Buffet’s investment business, Berkshire Hathaway Inc., has announced it will buy Dominion Energy’s natural gas transmission and storage network for $4 billion, according to Reuters.
The transaction means that Berkshire Hathaway will receive more than 12,390 kilometers (km) of natural gas transmission lines and 900 billion cubic feet (bcf) of gas storage. It is understood that this deal is an effort for CEO Warren Buffet to reduce his conglomerate’s cash pile and leave Dominion Energy to carry out utilities operations.
The deal will also assume $5.7 billion of debt, giving the transaction a new total of $9.7 billion enterprise value.
Speaking about the deal, Buffet said: “We are very proud to be adding such a great portfolio of natural gas assets to our already strong energy business.”
Berkshire Hathaway Energy, a faction of Berkshire Hathaway Inc., is buying Dominion Energy Transmission, Questar Pipeline, Carolina Gas Transmission, 50% of the Iroquois Gas Transmission System, and 25% of the Cove Point liquefied natural gas facility in Maryland. However, Dominion will retain 50% of Cove Point, of which Brookfield Asset Management Inc. owns 25%.