Berkshire Hathaway Boosting Stake in Cove Point LNG for $3.3B

Berkshire Hathaway Energy is boosting its ownership stake in Cove Point LNG through a $3.3 billion acquisition from Dominion Energy.

Berkshire Hathaway Energy has agreed to purchase Dominion’s 50% limited partnership stake in Cove Point LNG LP, an LNG export terminal complex in Lusby, Maryland.

When the deal closes, the acquired interest will be held by Berkshire Hathaway Energy subsidiary BHE GT&S, which currently serves as the general partner and operator of Cove Point.

The transaction increases to 75% Berkshire’s ownership interest in the Cove Point LNG limited partnership, the company said in a July 10 news release. The remaining 25% limited partnership interest is held by a subsidiary of Brookfield Infrastructure Partners.

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“We are proud of our operations at Cove Point and are excited for this opportunity to increase our ownership in these world-class facilities,” said BHE GT&S President Paul Ruppert. “The Cove Point team will continue to focus on providing safe, affordable and reliable service to its valued customers.”

The $3.3 billion deal will be funded with cash on hand, including cash realized from liquidating certain investments, Berkshire said.

In 2020, BHE acquired a 25% stake in the Cove Point LNG limited partnership through a major acquisition from Dominion. The nearly $10 billion transaction also included interstate gas transmission pipelines and gas storage capacity, according to Securities and Exchange Commission filings.

Gibson, Dunn & Crutcher LLP is advising Berkshire Hathaway Energy on the deal.