Warren Buffett’s Berkshire Hathaway has acquired Dominion Energy’s stake in the Cove Point LNG project in Maryland for $3.3 billion.
With this acquisition, Berkshire now owns 75% of Cove Point; Brookfield Infrastructure Partners holds the remaining 25%. Cove Point LNG has an annual capacity of over 5 million tons of liquefied natural gas, with long-term contracts in place with buyers like Tokyo Gas Co. and Sumitomo Corp.
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This acquisition comes at a time when the U.S. LNG sector is experiencing significant growth. Following Europe’s gas supply challenges last year, U.S. LNG became a crucial source of gas for the continent. While European supply is currently not as tight, the approaching winter could lead to increased demand and competition with Asian LNG importers.
The United States currently has seven Liquified natural gas export projects, but there are plans for substantial capacity expansion, potentially making it the world’s largest exporter. Eight new Liquified natural gas projects are currently under construction, with a combined annual production capacity of 86 million tons.
However, concerns have been raised about a potential shortage of skilled labor in the industry due to this expansion. Managing labor availability and supply chains has become crucial for industry players like Bechtel Corp., responsible for constructing nearly a third of large Liquified natural gas production projects in recent years.