Dominion Energy has closed the sale of its 50% stake in the Cove Point LNG (liquefied natural gas) project in Maryland, US, to Berkshire Hathaway Energy for $3.3bn.
Located on the Chesapeake Bay near Lusby, Cove Point LNG has a storage capacity of 14.6 billion cubic feet (bcf) and a send-out capacity of 1.8bcf per day.
With the completion of the deal, Berkshire Hathaway Energy subsidiary BHE GT&S holds a 75% stake in the Cove Point LNG project, while the remaining 25% is held by a subsidiary of Brookfield Infrastructure Partners.
BHE GT&S president Paul Ruppert said: “BHE GT&S will continue its excellent operating and commercial performance at Cove Point, which plays an important role in Berkshire Hathaway Energy’s delivery of clean, low-cost and sustainable energy solutions to customers and communities.”
A subsidiary of BHE GT&S is serving as the general partner and operator of the Cove Point natural gas pipeline and its LNG terminal.
Dominion Energy is also due to receive $200m in proceeds from the settlement of related interest rate derivatives.
The deal was announced in July 2022.
At that time, Dominion Energy chair, president and CEO Robert Blue said: “Since 2002, Cove Point has been an excellent service provider to its international and domestic customers – linking global gas supplies with American customers, and American gas supplies with customers around the world.
“However, this investment is non-core to Dominion Energy as we focus on our state-regulated utility operations. The sale demonstrates our commitment to the company’s credit profile and represents an attractive exit from what has been an excellent investment for our shareholders.”
