Morgan Stanley Said To Be Planning Natgas Facility
By ELAINE LOW, INVESTOR'S BUSINESS DAILY
Posted 08/29/2014 01:32 PM ET
Morgan Stanley (NYSE:MS) is reportedly on the road to developing a 50-acre natural-gas export plant in Freeport, Texas, with an annual shipment capacity of 60 billion cubic feet of compressed natural gas.
The investment bank has filed an application with the Department of Energy to build and operate one of the first compressed natural gas export facilities in the U.S., said Reuters.
Shares of the company were up 0.8% in the stock market today.
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Morgan Stanley is one of two Wall Street banks — the other being Goldman Sachs (NYSE:GS) — that are permitted to participate in physical commodities activities. It had previously sold off most of its oil operations in an effort to pull back its physical commodities involvement.
The bank is said to be planning compressed natural gas shipments to Caribbean nations including the Dominican Republic, Guatemala, Costa Rica and others, where natural gas would be a more affordable option than oil.
Once it gets the green light, development of the facility will take about a year at a cost of $30 million-$50 million, said Reuters.
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