US Dominion Closes Sale of Assets

US utility Dominion Energy has closed the sale of the majority of its gas transmission and storage assets to Berkshire Hathaway Energy, an affiliate of Berkshire Hathaway, it said November 2.

Dominion, which supplies gas to over 7mn households, is committed to net zero carbon dioxide and methane emissions from its power generation and gas infrastructure operations by 2050. 

The deal comprised about $2.7bn cash and about $5.3bn of debt. The operations include more than 5,500 miles of interstate gas transmission pipelines, about 775bn ft³ of operated gas storage and an operating 25% stake in Cove Point LNG terminal.

The sale of the company's interests in the Questar Pipelines, also to Berkshire Hathaway Energy, is expected to be completed in early 2021 following receipt of anti-trust clearance. The company has already received a cash payment of about $1.3bn ahead of the sale of these interests, and will transfer about $430mn of related debt to Berkshire Hathaway Energy upon close of this follow-on transaction.

The full transaction is expected to result in a nearly $6bn reduction in Dominion Energy debt and the company also expects total share repurchases of Dominion Energy common stock to be at least $3bn.