JBF Industries up 3%, enters into agreement with ONGC Mangalore

Moneycontrol BureauShares of JBF Industries gained nearly 3 percent intraday Monday as its subsidiary entered in to a long term agreement with ONGC Mangalore Petrochemicals.The company's step down subsidiary JBF Petrochemicals 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," company said in press release. "Paraxylene will be supplied by OMPL to JBF Petrochemicals, through a dedicated pipeline about 3 km in length," it added.AS per agreement the supply of Paraxylene is 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.At 09:28 hrs JBF Industries was quoting at Rs 211.70, up Rs 4.80, or 2.32 percent on the BSE.Posted by Rakesh Patil