Dominion Energy, Inc. has entered into an agreement with Brookfield Super-Core Infrastructure Partners in which the company will transfer a 25 percent non-controlling equity interest in Cove Point to Brookfield for just over $2 billion.
The announcement is part of Dominion Energy’s previously communicated intention to establish a permanent capital structure for Cove Point. Dominion Energy Cove Point LNG, LP (Cove Point) owns an LNG import, export and storage facility located on the western shore of the Chesapeake Bay in Lusby, Md., including a 136-mile pipeline that interconnects the facility with the interstate pipeline system. These assets provide liquefaction, gasification, transportation, storage and peaking gas supply services to customers in the United States, India and Japan. In 2018, the company completed a $4.1 billion expansion to enable natural gas exports.
Thomas F. Farrell, II, Chairman, President and Chief Executive Officer, said: “The agreement highlights the compelling intrinsic value of Cove Point and allows us to efficiently redeploy capital toward our robust regulated growth capital programs. We are very excited to have a highly respected infrastructure investor such as Brookfield as our partner in this world-class facility.”
Upon transaction close, expected by the end of 2019, Dominion Energy will retain full operational control of the facility and its services, and existing customers and employees will be unaffected by this recapitalisation agreement.
For more information visit www.dominionenergy.com