With the passage of time the Master Limited Partnership instead of remaining restricted to just few of the expanded steadily. Today there are diverse NGL Energy Partners that are MLP’s. Today the Alerian MLP index has become the leading gauge of the energy master limited partnerships. In this article we will discuss the top 3 types of Master Limited Partnership’s.
Natural gas pipeline MLPs
Natural gas pipeline MLPs are the ones that are responsible to manage pipelines not only within the state but also across the state lines. These pipelines are the ones that bear the responsibility of delivering natural gas to the power utilities as well as local distribution companies in addition to storage tanks and also connect to the other pipelines.
Liquids pipelines and terminal MLPs
Liquids pipelines are the ones that transport the crude oil and petroleum products in addition to the natural gas liquids and the refined products to the refineries a well as the storage tanks (terminals). There are many companies that are involved in this. The Natural gas liquids infrastructure MLPs are the ones that process the Natural gas gathered from the wellheads prior to delivering to the end users.
Marketing/Retail/ Shipping MLPs
Marketing and Retail MLPs engage in the distribution of the liquefied petroleum gases including the propane and butane whereas Shipping MLPs are the ones that own as well as operate the floating storage and regasification units in addition to liquefied natural gas (LNG) marine transportation.
All in all, these are the top 3 types of Master Limited Partnership’s. MLPs are popular for the reason that these offer a lot of tax benefits to the investors owing to which several investors get attracted to it. One factor that intrudes its popularity is the K-1 statement filing which is quite annoying. They are the representatives of the equity capital of the business and are largely concentrated in the energy sector but can also be correlated to the sharp moves in the commodity pricing. At the end of the day, there remains a great scope in MLP Investing.
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