Dominion Energy is reportedly mulling to sell its stake of 50% in the Cove Point LNG project, a gas liquefaction facility in Lusby, Maryland, US.
In this regard, the company is engaging with advisers to seek interest from infrastructure funds and other potential suitors reported Bloomberg News, citing undisclosed sources having information on the matter.
Dominion Energy’s stake in the liquefied natural gas (LNG) project in the Chesapeake Bay could be multibillion-dollar worth.
Currently, discussions about the sale of the stake are at an initial stage, and Dominion Energy may still decide to retain the 50% stake, said the sources.
The Cove Point LNG project is operated by Berkshire Hathaway’s BHE GT&S, which has a 25% stake. The remaining 25% stake in the LNG facility is held by Brookfield Asset Management.
The LNG export facility is said to be the first such facility on the US East Coast. Its storage capacity is 14.6 billion cubic feet (BCF), while its daily send-out capacity is 1.8BCF.
The LNG terminal connects through its own pipeline to key Mid-Atlantic gas transmission systems of Transcontinental Gas Pipeline, Eastern Gas Transmission and Storage, and Columbia Gas Transmission.
Last week, Dominion Energy CEO Bob Blue said that the company has launched a ‘top-to-bottom’ business review aimed at ensuring that it is best positioned to generate substantial long-term value for shareholders.
The company’s net income for the three months ended 30 September 2022 was $778m, compared to $654m for the same period in the previous year.
