Tolling agreement

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Tolling agreement

An agreement to put a specified amount of raw material per period through a particular processing facility. For example, an agreement to process a specified amount of alumina into aluminum at a particular aluminum plant.

Tolling Agreement

An agreement between two companies in which one agrees to supply a certain amount of a raw material every so often. For example, an oil refinery and a drilling company may agree that the drilling company will sell the refinery a certain number of barrels of crude oil every month so that the refinery has something to refine. Tolling agreements are relevant to supply chains; because of the tolling agreement, the refinery in the above example may be more confident that it can sell refined oil to other companies along the supply chain. Tolling agreements can therefore be mutually advantageous.
References in periodicals archive ?
The rating for the Cameron liquefied natural gas (LNG) project derives from low cash flow volatility anchored by availability-based tolling agreements, with costs passed through to the revenue counterparties.
In July 2012, Freeport LNG executed 20-year use-or-pay liquefaction tolling agreements with Osaka Gas and Chubu Electric equivalent to the minimum guaranteed production capacity of Train One.
The progress has made a negotiation of the existing 3 legally binding Tolling Agreements that is likely to be Inter-Shipper Coordination Agreement to govern the long term relationship between the potential 5 LNG Tolling Parties.
Regulators probing whether banks manipulated Libor have been asking banks under investigation to sign tolling agreements that the banks won't challenge enforcement actions by citing the statute of limitations, the Wall Street Journal reports.
Many of these taxpayers likely have taken a position similar to the taxpayer in the CCA and mark their tolling agreements to market.
This agreement will include dispatchable unit contingent energy only tolling agreements, non-dispatchable qualifying facilities resources, financial call options and resource adequacy capacity products.
Contracts being sought include dispatchable unit contingent energy only tolling agreements, non-dispatchable qualifying facilities resources and resource adequacy capacity products.
Under tolling agreements the operator is obligated to be available to render the liquefaction service at the request of the customer up to the contracted volumes.
9-megawatt oil-fired electric generation facilityA and related tolling agreements.
Substantially Contracted Cash Flows: Cash flows are nearly fully contracted under tolling agreements with investment grade off-takers through 2015.
Cash flows have been and are expected to remain stable under fixed price tolling agreements with investment grade counterparties.
Stable cash flows are largely dependent on achieving minimum availability levels required under Mackinaw's tolling agreements to avoid reductions in capacity payments.