A deal has been agreed for Berkshire Hathaway Energy, a division of Berkshire Hathaway Inc., to buy Dominion Energy Inc.’s interest in a liquefied natural gas (LNG) export project in Maryland.
The $3.3 billion deal will raise Berkshire Hathaway Energy’s ownership of the terminal to 75%, a significant rise.
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A unit of Brookfield Infrastructure Partners will hold the remaining 25%, according to a news announcement issued on Monday by Warren Buffett’s Berkshire Hathaway.
In 2020, Berkshire Hathaway Inc. made its initial investment in the export project, acquiring a stake in the one-train facility with a 5.25 million ton annual export capacity.
With this most recent agreement, Berkshire is now firmly in control of one of just seven active LNG export facilities in the country.
This acquisition puts Berkshire Hathaway in a good position given the expanding economic and geopolitical significance of LNG.
Recent events have highlighted the importance of this agreement. Due to supply difficulties brought on by the invasion of Ukraine in 2022, natural gas prices shot significantly.
However, liquefied natural gas supplies from the US were crucial in keeping the economy of Western Europe afloat throughout this period.
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Berkshire Hathaway’s LNG Terminal Acquisition
Berkshire Hathaway gains a strategic asset with the purchase of the Maryland LNG terminal that enables the business to take advantage of the rising demand for LNG and its place in the world energy markets.
Dominion Energy stated in a separate statement that it will pay off debt with the sale’s revenues. In order to present an updated strategic and financial perspective, the company has been undertaking a business review and intends to host an investor day in the third quarter.
Overall, Berkshire Hathaway Energy’s acquisition of Dominion Energy’s interest in the Maryland LNG export project increases the company’s position in the LNG market and enables it to profit from the rising economic significance of LNG exports and natural gas imports.
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