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JBF Industries' subsidiary enters into long term agreement with ONGC Mangalore Petrochemicals

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Capital Market
Last Updated : Apr 16 2016 | 12:01 AM IST

For supply of Paraxylene

JBF Industries announced that JBF Petrochemicals, a step down subsidiary of JBF Industries, has entered in to a Long Term Agreement with ONGC Mangalore Petrochemicals (OMPL) for supply of Paraxylene, the main raw material for production of Purefied Terephthalic Acid (PTA).

JBF Petrochemicals, is in the process of commissioning a 1.25 million Tonnes per annum PTA plant, using technology from BP, at Mangalore SEZ, Karnataka. Paraxylene will be supplied by OMPL to JBF Petrochemicals, through a dedicated pipeline about 3 k.m. in length.

The agreement entails supply of Paraxylene for a period of 10 years, with provision of further increasing the period of supply by another 5 to 10 years by mutual consent. This agreement facilitates assurance of supply of raw material for the upcoming PTA project on a long term basis.

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First Published: Apr 15 2016 | 1:34 PM IST

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