Natural gas pipeline project canceled after Supreme Court victory
Dominion Energy announced Sunday it has agreed to sell its natural gas transmission and storage network to Warren Buffett's Berkshire Hathaway in a deal valued at $10 billion, including the assumption of debt.
Why it matters: The deal comes as Duke Energy Corp. and Dominion Energy announced they are canceling their plans for the $8 billion Atlantic Coast Pipeline following a Supreme Court ruling. The ruling removed major hurdles for the companies, but "recent developments have created an unacceptable layer of uncertainty and anticipated delays" for the project.
Between the lines per Axios' Ben Geman: The Atlantic Coast Pipeline project has been among the high-profile battles over fossil fuel infrastructure that have been intensifying in recent years.
- Its demise is a win for environmental groups and shows how energy companies face continued hurdles to building big pipelines and other projects, despite White House efforts to speed up approvals and ease environmental reviews.
- Delays of the project pushed costs to increase, CNBC reports.
The state of play: This is Berkshire Hathaway's first major deal since the coronavirus pandemic hit the U.S., per CNBC.
- Buffett is spending $4 billion to buy Dominion Energy's national gas transmission and storage assets.
- Berkshire Hathaway previously carried 8% of all natural gas transmission in the U.S., but will now carry 18%.