Eastman Chemical looking at US MLP tax structure for new projects

26 October 2012 15:08  [Source: ICIS news]

HOUSTON (ICIS)--Eastman Chemical is looking at opportunities to use the tax-advantaged “Master Limited Partnership” (MLP) structure for olefins projects, the CFO of the US-based producer said on Friday.

Earlier this month, US tax authorities issued a ruling on potential tax benefits for firms using the MLP structure for olefins projects.

Eastman CFO Curt Espeland said the company is evaluating the ruling to see how it can benefit from it.

“[MLP] clearly becomes an additional factor to consider with our non-operating assets, like the idled cracker we have sitting in Longview, Texas” or other olefins investments Eastman may undertake, Espeland said.

“But it is clearly too early to say what is the best way to create value here,” Espeland told analysts during Eastman’s third-quarter results conference call.

Earlier this week, Andrew Liveris, CEO of Dow Chemical, also said that his company is looking at opportunities to use MLP structures as it works on new olefins projects.

Additional reporting by Joseph Chang in New York

By: Stefan Baumgarten
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