​One year ago, Berkshire Hathaway stunned the COVID-weary investment world with an energy acquisition no one saw coming. BH’s $8+ billion purchase last July for the lion’s share of Va.-based Dominion Energy’s natural gas transmission and storage assets included three pipelines sprawling 7,700 miles; 50% ownership of a fourth; 20.8 BCFD of transportation capacity; 900 BCF of storage; a 25% stake in Cove Point LNG; and control of 18% of all U.S. interstate gas flows. The transaction achieved antitrust clearance in September, right before Dominion announced a “dual-phase” closing related exclusively to the sale of its Questar Pipeline Group. The two companies in October entered into a second agreement—this one for Questar—and BH plunked down a $1.3 billion deposit on Questar’s Rocky Mountain system comprised of 2,500+ miles of gas pipe and underground storage. Regulatory approvals were expected early this year. Cue the crickets. Reese Energy Consulting today is following the latest news from Dominion and BH, which have terminated that second agreement as crickets continue to chirp from the FTC. Dominion now must secure a loan to refund Berkshire’s deposit while on the hunt for another buyer.

What do you think? Learn more about REC and our natural gas expertise at www.ReeseEnergyConsulting.com.

Berkshire Hathaway

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

www.berkshirehathaway.com

Dominion Energy

Dominion Energy, Inc., commonly referred to as Dominion, 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

0 Comments

Submit a Comment

Your email address will not be published.

You Might Also Like…