Berkshire Hathaway Inc. (BRK) made it public that it will be purchasing the natural gas transmission and storage network of Dominion Energy Inc. (D) in a deal worth $4 billion.
Dominion says it resulted to selling the gas assets so as to concentrate on utilities operations. On the other side, Berkshire says this deal will help its chairman and billionaire investor Warren Buffett to reduce his accumulated cash pile.
This acquisition deal includes over 7,700 miles (12,390 km) of natural gas transmission channels and gas storage totaling to 900 billion cubic feet.
These transmission lines include, Carolina gas transmission, 50% of Iroquois gas transmission system, Questar pipeline, 25% of Cove point liquefied natural gas facility in Maryland and Dominion Energy Transmission.
Dominion will retain 50% ownership of the Cove point natural gas facility, the remaining 25% is owned by Brookfield Asset Management Inc. (BAM).
“We are very proud to be adding such a great portfolio of natural gas assets to our already strong energy business,” said Buffett regarding the deal.
After the deal has been closed, Dominion says it will be expecting 90% of its operating income in the future to come from utilities.
On other news, Dominion and Duke Energy Inc. (DUK) announced abandoning their $8 billion Atlantic Coast Pipeline project. They both cited uncertain costs and delays in the project as the main reasons of walking away from the project.
Both companies made their announcements separately.