Tolling agreement

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 ?
2 grams of gold were returned to Kyrgyzstan based on tolling agreement (an agreement by a toller with an owner of raw materials to process the raw material for a specified fee ("toll") into a product with the raw material and the product remaining the property of the provider of the raw material), Sabyrov said.
The requirement is cancelled for legal entities to file for a special permit from NBU to import investment metals manufactured by a nonresident under the tolling agreement if these investment metals are to be sold to the NBU in full.
The Mankato Power Plant, a 375 MW natural gas-fired, combined-cycle power plant located in Minnesota, provides electricity to Northern States Power, a subsidiary of Xcel Energy Inc, through July 2026, pursuant to a tolling agreement.
This proposal is open to both conventional and renewable energy resources and can include an asset acquisition, PPA, tolling agreement or a toll with a purchase option for a minimum of 10 years.
As per 2B3 clause, LNG buyers are required to enter into an agreement with terminal and or/operator for LNG receiving storage and re-gasification services at its terminal under the tolling agreement, sources said.
Company continued to decrease production volumes under tolling agreement as local consumption of zinc surged.
TAQA also has an interest in a tolling agreement for the Red Oak power plant in Sayreville, New Jersey.
The purchase price is comprised of a USD390m portion for the 593MW dual-fuel power plant Fox Energy Center, which is located in Kaukauna, Wisconsin, and a USD50m consideration to be paid in connection with an early termination of the tolling agreement between the entities, Integrys said.
To provide customers with a smooth transition," the companies say, "Arkema will continue to produce the products for several months through a tolling agreement with Bayer MaterialScience.
The tolling agreement between the company and UKDS remains in place, ensuring around 50 of the company's original workforce continues to be employed for the time being.
The IRS concluded that the tolling agreement was not a commodity and that mark-to-market treatment of the agreement did not clearly reflect income.
The power plant is scheduled to begin commercial operation in this June, with a long-term tolling agreement (15-year term, with option to extend for five years) concluded with the RWE Group, one of the largest utility companies in Germany.