Berkshire Hathaway Makes a New Deal-and It’s a Big One

Berkshire Hathaway Makes a New Deal-and It’s a Big One

In its largest deal in four years, conglomerate giant Berkshire Hathaway has scooped up the natural gas pipeline and storage assets from Dominion Energy in an all-cash deal valued at $10 billion. The announcement came concurrently with news that the utility giant would scrap its plans to build the 600-mile Atlantic Coast pipeline after years of costly regulatory and environmentalist battles. Two other proposed pipelines have been shelved this year in the eastern region.

Bershire Hathaway

Berkshire Hathaway is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States.

www.berkshirehathaway.com

Dominion Energy

Dominion Energy, Inc. is an American power and energy company headquartered in Richmond, Virginia that supplies electricity in parts of Virginia, North Carolina, and South Carolina and supplies natural gas to parts of Utah, West Virginia, Ohio, Pennsylvania, North Carolina, South Carolina, and Georgia. Dominion also has generation facilities in Indiana, Illinois, Connecticut, and Rhode Island.

www.dominionenergy.com

Dominion, the nation’s second-largest utility, serves 7 million natural gas and electrical power customers in 20 states from its headquarters in Richmond, Va. The company has set a net-zero emissions target by 2050, along with a five-year, $26 billion growth capital plan through ongoing investments in new technology, solar, wind, and renewable natural gas.

The sale to Berkshire Hathaway includes more than 7,700 miles of gas pipelines, 900 BCF of gas storage, a 25% interest in the bi-directional Cove Point LNG export terminal, and $5.7 billion in assumed debt. The conglomerate owns 10 other energy and energy-related companies as part of its Berkshire Hathaway Energy segment. Close of the Dominion deal is expected in 4Q this year.

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Targa Announces Open Season; Excelerate Expands LNG Fleet

Targa Announces Open Season; Excelerate Expands LNG Fleet

RMR features the latest high-point news to keep you to up to date with midstream activities happening in the basins and shale plays that matter to you most.

Targa Launches Open Season on Proposed NGL Interconnection

With more than 2,000 miles of NGLs pipelines, Houston-based Targa Resources now has its eye on building a new interconnection to link upstream pipeline facilities in the Anadarko Basin at Kingfisher, Okla., to the company’s fractionation facilities at the Mont Belvieu, Texas, NGL hub.

Targa has announced an open season from July 1-31 to gauge shipper interest on a proposed interconnection in Kingfisher where, following construction of a new 110-mile extension of the company’s Grand Prix NGL pipeline, will connect supplies to Williams’ Bluestem Pipeline. The Bluestem originates from Williams’ fractionator in Conway, Kan., and the terminus of Overland Pass Pipeline to Targa’s Grand Prix. Commercial service on the 188-mile Bluestem and the Grand Prix extension is expected in 1Q 2021.

Excelerate Adds 10th LNG Tanker to FSRU Fleet

While the nation’s LNG industry has largely fixated on the development of multi-billion-dollar export terminals that takes years to construct, Excelerate Energy has taken a whole different direction. And by “whole different,” we mean a complete 180-degree turn that’s put this company on the global map.

 Headquartered in The Woodlands, Texas, Excelerate puts its money on imports, converting LNG to natural gas aboard its fleet of floating storage regasification units (FSRUs). From the offshore vessel, gas flows to shore by way of an underwater pipeline where it’s distributed to power plants and homes. Excelerate owns import LNG terminals from Boston to Bangladesh and has secured the title of operating the largest fleet of FSRUs in the world, in addition to pioneering ship-to-ship transfer of LNG. Excelerate now has added a 10th FSRU to its fleet—the Excelerate Sequoia—which can store 173,400 cubic meters of LNG and act as an offshore import terminal to deliver natural gas to communities and nations near and far.

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Mirage Energy Project Will Pipeline More Permian Gas to Mexico

Mirage Energy Project Will Pipeline More Permian Gas to Mexico

With a $4 billion loan now tucked in its back pocket, San Antonio-based Mirage Energy Services is on the way to develop an ambitious, five-prong natural gas project that will funnel more supplies to Mexico—and solve a big logistics problem once completed. Gas exports in the form of LNG pose numerous challenges for U.S.-to-Mexico marine transportation as Supertankers can’t fit through the Panama Canal. As an alternative course, shipments via the Pacific Ocean are forced to take a dangerous and costly journey around Cape Horn.

Mirage Energy

After locking up an interconnect agreement last year with Ohio-based WhiteWater Midstream and its soon-to-be-completed Whistler Pipeline, Mirage says it will build four pipelines in addition to the first underground storage facility in Mexico—and what will be the largest of its kind in North America. For reference, the 475-mile Whistler, scheduled for service in 2021, will transport 2 BCFD of Permian gas from Waha, Texas, to the Agua Dulce area in South Texas, where it will connect with Mirage’s 93.9-mile Concho pipeline.

As part of the project, Mirage will construct the 46-mile, bi-directional Concho Extension, which will flow gas from Agua Dulce to a new international border crossing near Progeso, Texas (Progreso Crossing). The company also will build the 36-mile Progreso Extension that connects to Mexico’s Cenagas Station 19, as well as build the 67-mile, bi-directional Progreso II Extension that will terminate at the country’s Los Ramones interconnect.

Finally, Mirage has been hired by Northern Hemisphere Logistics to breathe new life into the long-awaited Isthmus Corridor. This segment of the overall Mirage project will link the company’s proposed, underground Burgos Hub storage facility, via its planned 14-mile Storage Line pipeline, to Mexico’s transmission system. The Isthmus Corridor will include rehabilitating crude and products ports and connecting pipelines on the Gulf of Mexico and Pacific Coast, and will create a 1,000-mile natural gas system that spans the Mexican isthmus. With enough capacity to hold 786 BCF of natural gas, the Burgos Hub will have enough storage to secure a six-month supply of gas for all of Mexico.

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The Making of a La., LNG Hub

The Making of a La., LNG Hub

With three export terminal projects in the wheelhouse, Va.-based Venture Global LNG focuses its investments exclusively in the Bayou State with modular-designed, mid-scale liquefaction processing plants that are considered less risky and require less time to construct. The company’s proposed Plaquemines LNG Terminal, which will be located on the La., Gulf Coast, has now received federal approval to begin initial site work of the more than 600-acre location that will include 18 integrated single-mixed refrigerant blocks, four LNG storage tanks, three loading docks, and power generation facilities.

Venture Global LNG

Venture Global LNG is a long-term, low-cost producer of North American liquified natural gas (LNG). Our three export facilities, Calcasieu Pass, Plaquemines LNG and Delta LNG, will supply the world’s growing demand for low-cost, clean and reliable North American energy.

venturegloballng.com

Upon completion in 2023, the Plaquemines export terminal will produce 24 MTPA of LNG. The $8.5 billion project also includes construction of two pipelines that will interconnect with existing interstate pipelines to feed natural gas to the plant. Venture Global has signed long-term sale and purchase agreements with Polish Oil & Gas Company and Electricite de France. The company’s two other terminal projects include Calcasieu Pass in Cameron Parish, La., which will produce 10 MTPA of LNG, and the Delta LNG terminal located on a 540-acre site on the Mississippi River, south of New Orleans.

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Pipelines and Pipe Dreams

Pipelines and Pipe Dreams

RMR features the latest high-point news to keep you to up to date with midstream activities happening in the basins and shale plays that matter to you most.

Mountain Valley Gets Its Groove Back

The beleaguered Mountain Valley Pipeline (MVP) has won FERC approval to lay a section of natural gas pipe under the Roanoke River in the southwest portion of Va. Construction has been halted since last Fall. The final leg of this project is expected to take 90 days, although plans are under discussion to extend the once-completed 303-mile pipeline south into N.C. The $5.5 billion MVP, which stands 90% complete, will flow 2 BCFD of natural gas sourced from the Marcellus and Utica basins to southern Va., and—pending additional legal challenges—is expected to go online by year end. Mountain Valley Pipeline is a joint venture of Equitrans Midstream, NextEra, Con Edison Transmission, WGL Midstream and RGC Midstream.

Investment Firm Glenfarne Snatches Up Magnolia LNG

Sweet Magnolia, you’ve changed hands so many times in such short order it’s hard to keep up. Just when you thought the Magnolia LNG export project in Brownsville, Texas, was well on its way to becoming a reality under the new ownership of La., landowner, investor and energy attorney Bill Blanchet, his Global Energy Megatrend (GEM), and Louisiana Natural Gas Exports—whoops! Not so fast, cowboy. The project has changed hands yet again.

N.Y.-based investment firm Glenfarne has now purchased Magnolia and its patented LNG processing technology for $2 million with every intention to bring the project to a final investment decision, break dirt and get on with the business of LNG processing and exports. Under Glenfarne, the Magnolia LNG export project will be rebranded Magnolia LNG Holdings. The firm’s Alder Midstream portfolio company holds a majority ownership of the also-proposed $3.5 billion Texas LNG Brownsville export terminal.

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