Canadian equity fund Brookfield Super-Core Infrastructure Partners has agreed to pay $2 billion for a 25% non-controlling equity interest in Dominion Energy’s Cove Point LNG.
(Image via Dominion Energy)
The LNG import, export and storage facility is based in Chesapeake Bay, Maryland and includes a 136 mile pipeline connected to the US interstate pipeline system. It provides liquefaction, gasification, transportation, storage and peaking gas supply services to the US, India and Japan.
The deal gives Cove Point an intrinsic capital value of $8.22 billion, and will allow the operators to establish a permanent capital structure, facilitating further growth.
"The agreement highlights the compelling intrinsic value of Cove Point and allows us to efficiently redeploy capital toward our robust regulated growth capital programs.” said Thomas F. Farrell II, chairman, president and chief executive officer of Dominion Energy.
“We are very excited to have a highly respected infrastructure investor such as Brookfield as our partner in this world-class facility."
The deal follows the completion last year of a $4.1 billion expansion to the facility to allow natural gas exports.
The transaction is expected to close by the end of the year. Dominion Energy will retain full operational control of the facility and its services.
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