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Buffett's Berkshire to buy Dominion Energy gas assets for US$4b
[BENGALURU] Warren Buffett's Berkshire Hathaway Inc said on Sunday it agreed to buy Dominion Energy Inc's natural gas transmission and storage business for US$4 billion in cash, expanding its energy operations while allowing Dominion to focus on its utilities operations.
Berkshire's energy unit, Berkshire Hathaway Energy, is buying Dominion Energy Transmission, Questar Pipeline and Carolina Gas Transmission; 50 per cent of the Iroquois Gas Transmission System, and 25 per cent of the Cove Point liquefied natural gas facility in Maryland.
The transaction includes more than 12,390km of natural gas storage and transmission pipelines and about 900 billion cubic feet of gas storage.
Berkshire Hathaway Energy will also assume US$5.7 billion of Dominion's debt, giving the transaction a US$9.7 billion enterprise value. It expects a closing in the fourth quarter, pending regulatory approvals.
"We are very proud to be adding such a great portfolio of natural gas assets to our already strong energy business," Mr Buffett said in a statement.
The transaction does not include Dominion's interest in the Atlantic Coast Pipeline.
Dominion and Duke Energy Inc announced separately on Sunday they would cancel that project, saying delays and uncertain costs threatened its economic viability.