Dominion Energy Inc. has sold its Questar Pipelines business on the Wyoming-Utah border to Southwest Gas Holdings Inc.
The deal, announced in early October and completed on Friday, is valued at $1.975 billion, including the assumption of $430 million of existing debt.
Selling the pipeline business allows Dominion to focus on its utility customers and its clean-energy portfolio, such as solar farms and the development of an offshore wind farm, the company has said.
Richmond-based Dominion Energy had bought Questar Pipelines in late 2016 in a deal valued at $1.725 billion, including $823 million in cash and the assumption of $435 million in debt.
Questar owns and operates 1,888 miles of Federal Energy Regulatory Commission-regulated natural gas transmission and storage assets in Utah, Wyoming and Colorado.
Southwest Gas is a gas distribution company that serves Arizona, California and Nevada.
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The sale to Southwest Gas comes six months after Dominion Energy and Berkshire Hathaway Energy, a unit of Berkshire Hathaway Inc., announced that both companies had agreed to terminate a planned sale of the Questar Pipelines business because of uncertainty in receiving regulatory approval.
The Questar Pipelines business was among the natural gas assets that Dominion agreed to sell to Berkshire Hathaway Energy in November 2020. It sold substantially all of its gas transmission and storage business in that deal valued at $8 billion — $2.7 billion in cash and the transfer of about $5.3 billion of related debt.
The sale of Dominion Energy’s interests in Questar Pipelines, also to Berkshire Hathaway Energy, was expected to be completed in 2021 following regulatory clearance approval. Dominion had received a cash payment of about $1.3 billion in anticipation of the sale.
When both parties terminated the deal in July, Dominion Energy said it planned to take out a 364-day term loan to repay the $1.3 billion transaction deposit made by Berkshire Hathaway Energy.