Miscellaneous Notes -- Fossil Fuel -- Pipelines -- February 15, 2020

Enbridge:

• Enbridge update here. Very exciting. Along with fact that "Line 3" might be moving forward. Don't hold your breath.
• Easier to buy than to build: Houston LNG company to sell South Texas pipeline project. Link here. Another link here. Details:
• Rio Bravo Pipeline project
• seller: NextDecade
• $25 million
• Enbridge: will oversee construction and operation of the pipeline
• 137-mile natural gas pipeline project
• 4.5 billion cubic feet per day (around 750,000 boepd)
• from the Aqua Dulce hub near Corpus Christi to the port of Brownsville
• will close when NextDecade reaches a positive final investment decision
• expands Enbridge's presence at the Port of Brownsville and the Rio Grande Valley
• Enbridge placed its $1.5 billion Valley Crossing Pipeline into operation last year
• has since started moving natural gas from the Agua Dulce hub into Mexico
• Enbridge also bought a 10.5% stage in Annova LNG, a competing export terminal also proposed to be built at the Port of Brownsille
• environmentalists, shrimpers, fishermen working to have FERC overturn these permits

PSX:

• Announced yesterday Warren Buffett's Berkshire Hathaway sold most (95%) of its holdings in PSX

Closer look at PSX: in progress --

• start here, at marketbeat; 
• currently pays 3.89%
• then here, dividend calendar;

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Investing 2020

We've talked about this before. I am absolutely convinced that the next decade will be the decade for investors. It has, of course, already started.  But the tea leaves suggest some big things are happening for US investors.

Now this: the Trump administration appears to be ready to announce a new incentive for middle-class investors. It sounds like they will be identical to IRAs / 401(k)s but no requirement to hold until retirement and no RMDs. The new investment vehicles need a catchy name, like "IRAs" or "401(k)s, but until then I will simply refer to them as individual investment accounts (IIAs).

Just like IRAs, after one pays taxes on income, one can invest that income ("after-tax income") in these investment accounts. One will not pay taxes on these dividends or and will no pay taxes on capital gains. Of course, there will be limits on how much one can invest. My hunch is that to calm Bernie Sanders the new investment vehicles will be available only for the middle class; billionaires and millionaires need not apply.

I'm not convinced the US House would be willing to support anything the Trump administration proposes in an election year, but one never knows. The majority of US House members would probably qualify for this new incentive, and certainly their extended families and friends would qualify. So, we'll see.

Can you imagine tax-free dividends and capital gains? Who would lose? Tax-free municipal bonds? IRS?