Dominion Energy, a shareholder in the Cove Point LNG export plant in Maryland supplying Asia and Europe, has closed the sale of Questar Pipelines to Southwest Gas Holdings Inc. in a transaction valued at almost $2 billion, including the assumption of $430M of existing debt.
This transaction had first been entered into in early October 2021.
Questar Pipelines consists of Federal Energy Regulatory Commission-regulated and long-term contracted transportation and underground storage assets in the states of Utah, Wyoming and Colorado, together with related services and processing.
The buyer Southwest Gas distributes and transports natural gas to more than two million customers in Arizona, California and Nevada.
Southwest Gas said it had created a new subsidiary named MountainWest Pipelines Holding to own the Questar units.
Southwest Gas, based in Las Vegas, Nevada, said that Questar would be rebranded under the MountainWest name during the first half of 2022.
MountainWest provides 2,160 miles of highly contracted interstate natural gas pipelines in the Rocky Mountain region.
Southwest Gas named Colleen Larkin Bell to lead the MountainWest unit as President. Larkin Bell will report to Karen Haller, Executive Vice President of Southwest Gas.
“We are very enthusiastic about the addition of MountainWest to the Southwest Gas Holdings family of assets,” said John Hester, President and Chief Executive of Southwest Gas.
“Natural gas pipelines are essential to the nation's energy future, which includes alternative sources such as renewable natural gas,” added Hester.
“MountainWest brings increased scale and diversification to our business portfolio. and will focus on adding value by accelerating growth opportunities and positioning the company as a leader in the evolving energy landscape,” stated the CEO.
Dominion, based in Richmond, Virginia had previously agreed to terminate the planned sale of Questar to the Warren Buffet company, Berkshire Hathaway Energy, as part of a package that also included other assets such as the operatorship of Cove Point LNG.