Dominion Energy’s Cove Point LNG export plant on Chesapeake Bay in Maryland has been closed for about three weeks for its annual maintenance and when it comes back on stream it will be closer to coming under the control of US investor Warren Buffett.
The previous maintenance shutdown in 2019 lasted from September 20 to October 13.
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Cove Point produces around 5.2 million tonnes per annum from a single Train and has tolling agreements with Gas Authority of India and Sumitomo Corp and Tokyo Gas of Japan.
Dominion is currently finalizing the sale of a 25 percent operating stake in Cove Point to the Berkshire Hathaway Energy unit of Warren Buffett. The July 2020 deal between Dominion and Berkshire Hathaway Energy was valued at $9.7 billion and included gas transmission and gas storage assets as well as the Cove Point stake.
The Buffett company noted in its acquisition statement that the Cove Point plant was one of only six LNG export facilities in the US, the other five being Sabine Pass and Cameron in Louisiana, Corpus Christi and Freeport in Texas and Elba Island in Georgia.
The Dominion-Berkshire Hathaway transaction is expected to close in the fourth quarter of 2020. Business tycoon and philanthropist at the same time, Buffett was concluding his first big acquisition since 2015 and it happened to be in the natural gas and LNG business.
Buffett is considered one of the most successful global investors and has a net worth of $89Bln, making him the fourth-wealthiest person in the world. Earlier in 2020, Buffett made a move for an LNG and pipeline natural gas project in Canada. However, at the last minute he pulled out of the $6.7Bln LNG project deal in Quebec over concerns
