Warren Buffett’s Berkshire acquires natural gas assets from Dominion Energy

Andy Uhler, Kimberly Adams, and Alex Schroeder Jul 6, 2020
Heard on: Marketplace Morning Report
HTML EMBED:
COPY
Berkshire Hathaway Energy's acquisition of Dominion Energy's natural gas storage and transmission business is valued at close to $10 billion. Johannes Eisele/AFP via Getty Images

Warren Buffett’s Berkshire acquires natural gas assets from Dominion Energy

Andy Uhler, Kimberly Adams, and Alex Schroeder Jul 6, 2020
Berkshire Hathaway Energy's acquisition of Dominion Energy's natural gas storage and transmission business is valued at close to $10 billion. Johannes Eisele/AFP via Getty Images
HTML EMBED:
COPY

Berkshire Hathaway Energy, part of Warren Buffett’s famous company, announced it will acquire Dominion Energy’s natural gas transmission and storage business. The deal is valued at close to $10 billion.

Marketplace’s Kimberly Adams has more. She spoke with Marketplace’s Andy Uhler, and the following is an edited transcript of their conversation.

Andy Uhler: So, Kimberly, give me the numbers on this deal. What’s going on?

Kimberly Adams: So Berkshire Hathaway is picking up about 7,700 miles worth of natural gas transmission pipelines, Dominion’s large natural gas storage facilities, plus part ownership of an LNG export facility — that’s liquefied natural gas. But a big chunk of this $9.7 billion deal is actually Berkshire taking over debt, almost $6 billion worth of Dominion’s debt. And Dominion says now it’s planning to focus more on its state-regulated utility businesses. And in that sector they’ve been making a really big push toward renewable energy.

Uhler: And this wasn’t the only big news coming from Dominion Energy this week, right?

Adams: Right. Dominion and Duke Energy announced that they’re giving up on the Atlantic Coast Pipeline. That was an $8 billion project that was supposed to run a natural gas pipeline along the East Coast. But, like many of these pipeline projects, it was running into a lot of legal and environmental challenges. In a joint statement, the companies said that those delays and other cost uncertainties “threatened the economic viability of the project.”

As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.

Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.

Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.

Raise a glass to Marketplace!

Just $7/month gets you a limited edition KaiPA pint glass. Plus bragging rights that you support independent journalism.
Donate today to get yours!