Warren Buffett’s Berkshire Hathaway Energy has stepped away from the $1.3bn acquisition of Dominion Energy’s natural gas Rockies pipeline because of ongoing regulatory uncertainty from the Federal Trade Commission.
Termination of the sale was a potential outcome provided for in the agreement to sell Questar Pipelines. Berkshire Hathaway Energy had planned to acquire Dominion’s Questar Pipelines as part of a $2.5bn purchase of the company’s natural gas transmission and storage business. The decision not to go ahead with the pipeline deal has no impact on the rest of the sale which completed in November 2020.
The remaining assets include 5,500 miles of gas transmission pipelines and 775 bcf of gas storage.
The interstate natural gas pipeline runs through Utah, Wyoming and Colorado.
Dominion Energy is now starting a competitive process for the sale of Questar Pipelines, with a target close of year-end 2021.
This announcement does not affect Dominion Energy’s existing financial guidance. Dominion Energy will continue to account for Questar Pipelines as discontinued operations. The company said it intends to enter a 364-day term loan to repay the approximately $1.3bn transaction deposit made by Berkshire Hathaway Energy. That loan is expected to be repaid by year-end 2021 with proceeds from the sale of Questar Pipelines to an alternative buyer.
For more information visit: www.dominionenergy.com
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