D - Dominion Energy National Grid considering sale of natural gas pipelines - WSJ
2023-04-06 09:06:44 ET
Dominion Energy ( NYSE: D ) and National Grid ( NYSE: NGG ) are weighing potential sales of parts of their U.S. natural gas pipeline networks, The Wall Street Journal reported Thursday.
Dominion ( D ) reportedly is considering selling its gas distribution companies serving North Carolina, Ohio and parts of the western U.S., which could be worth as much as $13B, although the assets are unlikely to be sold all together.
Meanwhile, National Grid ( NGG ) is said to be exploring a possible sale of part of its pipeline network serving the northeastern U.S., where lawmakers want to curtail the use of fossil fuels, according to the WSJ report .
As efforts to phase out in-home natural gas accelerate, utilities are beginning to cope with the likelihood that parts of their gas systems risk becoming stranded assets, or facilities that retire before they pay for themselves.
Dominion Energy ( D ) "regularly carries high debt and a significant portion of its operating income is spent on interest payments," Blake Downer writes in an analysis published recently on Seeking Alpha .
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Dominion Energy, National Grid considering sale of natural gas pipelines - WSJ