The Strategist

US Dominion Energy sells assets for $10B to Buffett after refusing ACP gas pipeline


07/06/2020 - 06:25



U.S. electricity supplier Dominion Energy announced on Sunday that it is selling its gas business to Warren Buffett’s Berkshire Hathaway.



Dominion sells gas transportation and storage business to Buffett for $ 9.7 billion. The deal includes a 25 percent stake in the Maryland LNG terminal, although Dominion will keep a blocking packet in the terminal.

Earlier on Sunday, Dominion and its partner Duke Energy abandoned the Atlantic Coast Pipeline (ACP) large gas pipeline project, which was closed amid uncertainty in pricing and regulation. According to the energy companies, the price of the 8 billion-worth gas pipeline is not justified against the background of numerous delays and lawsuits by environmentalists, land owners and local residents. 

The partners abandoned the project, despite a major victory in the Supreme Court, which allowed the construction of the ACP under the Appalachian Trail - a walking route through the mountains of the Atlantic coast of the United States, which stretches for 3,500 kilometers from Georgia to Maine.

source: bloomberg.com