American power and energy company Dominion Energy and a unit of Warren Buffett’s Berkshire Hathaway have agreed to terminate the planned sale of natural gas pipeline company Questar Pipelines.
The companies stated that the termination is a result of ongoing uncertainty associated with a regulatory clearance.
The termination is effective as of 9 July.
This reportedly has no impact on the sale of gas transmission and storage assets to Berkshire Hathaway Energy completed in November 2020. That sale represented approximately 80 per cent of the original transaction value.
Dominion Energy says it is starting a competitive process for the sale of Questar Pipelines, with a target close of year-end 2021.
Dominion will continue to account for Questar Pipelines as discontinued operations. It intends to enter into a 364-day term loan.
The company will use proceeds from the loan to repay the approximately $1.3 billion transaction deposit made by Berkshire Hathaway Energy. That loan is expected to be repaid with proceeds from the sale of Questar Pipelines to an alternative buyer.