Dominion Cancels $1.3 Billion Pipeline Deal With Berkshire

Jul 20, | Contracts + Mergers

Dominion Cancels $1.3 Billion Pipeline Deal With Berkshire | Pipeline Technology Journal:

“Richmond, Virginia based Dominion Energy has cancelled its proposed natural gas pipeline sale to Warren Buffett’s Omaha based investment conglomerate Berkshire Hathaway. This decision was made, due to uncertainty that the regulators including FERC would approve such a deal. If the deal had gone through, Berkshire Hathaway would have purchased Dominion Energy’s pipeline subsidiary, Questar Pipelines for some $1.3 billion in cash and assumption of $430 in debt, as part of a larger purchase of Dominion’s natural gas transmission and storage business.

Already, Berkshire Hathaway has stated it has purchased in November, Dominion Energy’s other assets that included some 5,500 miles (8,850 km) of gas transmission pipelines and 775 billion cubic feet of gas storage, in November for $2.5 billion in cash after adjustments plus $5.6 billion of assumed debt. The recent announcement of the deal’s cancelation has no impact on the earlier deal transacted in November, which represented about 80% of the original transaction value, including the assumed debt, the companies said. It is now expected that Dominion will repay what it owes to Berkshire Hathaway, after selling its remaining Questar Pipelines assets to another buyer, by the end of the year.”