Warren Buffett just forked out a whopping US$3.3 billion (AU$4.9 billion) for a gas project in the United States.
In a sign that the billionaire investor doesn’t believe the end of gas is anywhere near nigh, the energy segment of Warren Buffett’s company, Berkshire Hathaway Energy, has inked an agreement with Dominion Energy to acquire its 50% stake in a liquefied natural gas export project.
As Bloomberg reports, the deal will increase Berkshire’s limited partnership ownership of the Cove Point LNG terminal to 75%. The terminal is located in the state of Maryland.
This will see Warren Buffett’s company take a controlling interest in one of only seven operational LNG export facilities in the US.
Cove Point counts big-name clients, including Tokyo Gas and Sumitomo among its long-term customers.
Berkshire made its initial investment into Cove Point in 2020. The facility is said to have an export capacity of 5.25 million tonnes.
The new deal remains subject to US federal regulatory approval.
Should we follow Warren Buffett by investing in ASX 200 energy shares?
The Oracle of Omaha is most famous for his stellar investing success that’s seen him build a personal nest egg of more than US$100 billion. But he also gets plenty of investor attention from the investing insights he regularly shares.
The adage that comes to mind here is, “The best investments provide real world value, not just market value.”
It would appear then, that Warren Buffett sees a profitable future in global gas markets.
Now, you and I may not have $4.9 billion to splash out on a controlling interest in a major LNG export terminal.
But we can run our slide rules over leading S&P/ASX 200 Index (ASX: XJO) energy shares.
With gas increasingly seen as a crucial transition fuel as the world plods its way towards lower emissions, stocks like Santos Ltd (ASX: STO), Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could be well-positioned to make hay.
