JBF Petrochemicals inks long term paraxylene supply agreement with ONGC subsidiary

18-Apr-16
JBF Petrochemicals has signed a long term paraxylene supply agreement with ONGC Mangalore Petrochemicals Ltd (OMPL) As per the deal, OMPL will supply paraxylene to JBF's purefied terephthalic acid (PTA) plant in Mangalore, Karnataka, as per Business Standard. JBF Petrochemicals Ltd is in the process of commissioning a 1.25 mln tpa PTA plant, using technology from BP, at Mangalore SEZ, Karnataka. Paraxylene will be supplied by OMPL to JBF Petrochemicals Ltd, through a dedicated pipeline about 3 km 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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