Warren Buffett’s Berkshire Hathaway Energy announced an agreement to buy Dominion Energy Inc’s stake in the Cove Point liquefied natural gas (LNG) export project in Maryland for $3.3 billion in cash.
The deal will increase Berkshire Hathaway Energy’s limited partnership ownership of the terminal to 75%, while a unit of Brookfield Infrastructure Partners holds the remaining 25%, Berkshire Hathaway Inc (NYSE:BRK.A) stated on Monday.
By acquiring a majority stake in the LNG facility, Berkshire controls one of just seven operational US facilities that can export LNG at a time when the fuel has assumed an increased economic and geopolitical significance, Bloomberg reported.
Berkshire Hathaway took its initial ownership interest in Cove Point, which has a storage capacity of 14.6 billion cubic feet and a daily send-out capacity of 1.8 billion cubic feet, in 2020.
Cove Point LNG has long-term contracts to supply companies such as Tokyo Gas Co and Sumitomo Corp, a Japanese trading company in which Buffett also has a stake.
Berkshire Hathaway Inc (NYSE:BRK.A) Class B shares edged up $0.29 to $341.39 in mid-morning trading on Tuesday and have gained 10% year to date.
Contact Sean at sean@proactiveinvestors.com