Dominion Energy Sells Questar Pipeline to Southwest Gas Holdings

Dominion Energy has sold Questar Pipeline to Southwest Gas Holdings. The sale was completed in 2022.

Questar Pipeline is a significant natural gas pipeline system. It spans over 3,000 miles across the western United States.

The pipeline system serves multiple states, including Arizona, Colorado, Kansas, Montana, New Mexico, Utah, and Wyoming.

The sale of Dominion Energy's Questar Pipeline to Southwest Gas Holdings has significant implications for Utah customers. Dominion Energy will use proceeds from the sale to reduce its parent-level debt, including retiring a 364-day term loan.

The sale price of $1.9 billion in cash and debt is a substantial amount, with Southwest Gas agreeing to pay $1.545 billion in cash and take on $430 million in debt related to the Questar Pipeline. This deal is expected to be finalized by the end of the year, pending federal approval.

The sale does not affect the utilities, but rather the interstate pipeline system and other assets. Dominion Energy acquired Questar Corp. in a $4.4 billion deal back in 2016, and the pipeline consists of over 2,000 miles of pipelines and underground storage assets within Utah, Colorado, and Wyoming.

Here's an interesting read: State Bank of Southern Utah

Dominion officials stated that the proceeds of the sale will be used to support the company's capital plan, which is one of the largest decarbonization programs in the country. This plan aims to reduce the company's reliance on fossil fuels and transition to cleaner energy sources.

The sale is a significant step in Dominion Energy's evolution as a company, allowing it to focus on fulfilling the energy needs of its utility customers and continuing growth of its clean-energy portfolio.