American power and energy company Dominion Energy will transfer a 25% non-controlling equity interest in Cove Point LNG to Brookfield Asset Management, in exchange for a cash consideration of just over US$2Bn, excluding working capital
Canada-based Brookfield has interests in real estate, infrastructure and renewables, with managed assets of US$500Bn.
Dominion Energy Cove Point LNG owns the LNG import, export and storage facility located on the western shore of the Chesapeake Bay in Lusby, Maryland, including a 219 km pipeline that interconnects the facility with the interstate pipeline system.
In March 2018, the LNG carrier Gemmata loaded the first export LNG cargo from Cove Point LNG, following a US$4.1Bn expansion at the facility. Under a 20-year contract, Dominion Energy sold Cove Point LNG’s 5.25 mta of LNG to India’s GAIL and ST Cove Point, a joint venture of Sumitomo Corp and Tokyo Gas. In 2018, Cove Point LNG exported 4,053M m3 of LNG.
In April 2019, Energy Innovator and Energy Universe, two 165,000-m3 capacity LNG carriers, were named at the Tsu shipyard of Japan Marine United to transport LNG from Cove Point LNG to Tokyo Gas terminals in Japan. Mitsui OSK Lines owns Energy Innovator and has a 90% interest in Energy Universe, with Tokyo Gas controlling the remaining 10% stake.
Under the deal with Brookfield, expected to close by year’s end, Dominion Energy will retain full operational control of Cove Point LNG and its services, and existing customers and employees will be unaffected by this recapitalisation agreement.