„If you`re building your own refinery, you need 500 to 1,000 workers to run the refinery with the right skills, and you need more engineers and you also need to train people, but when toll deals are made, you don`t need those skills,“ Della Pelle continued. „With toll contracts, you need a smaller group of people, mostly buyers and marketers, and it`s cheaper because they often work on commission.“ „Another disadvantage [with toll agreements] could potentially be security of supply,“ Della Pelle concluded. „But on the other hand, I think security of supply would be easy to achieve given the long-term contracts and the continued glut of oil supply.“ „If a company has sold gas sold, it`s x plus y and the cost and personnel, etc., but if it only sells gas, it only needs one or two employees,“ Pelle said. „But if you think about job opportunities, the record isn`t that good.“ „Of course, they`re working with an Indonesian company, but if Indonesia sees an increase in jobs at oil refineries, they need to consider producing more steel for the project,“ Pelle said. „But the main equipment and reactors will come from Russia. Some people will be involved in the construction, about 5,000, but it will be short-term. ORLANDO – As gas prices rise and electricity prices rise, more and more businesses are turning to tolls to finance and share the risk of building new commercial power plants, according to traders. Contractual clause in a purchase contract (SPA) that requires payment of a minimum quantity of natural gas, whether the delivery is accepted by the buyer or not. As gas prices rise and electricity prices rise, more and more companies are turning to pay-as-you-go to finance and share the risk of building new commercial power plants, according to traders. Roger D. Feldman, a partner and co-chair of Bingham`s financing and development group Dana LLP, told power-Gen International on Wednesday that the basic model is one of energy companies that can manage both fuel and electricity risks. Della Pelle highlights a new trend that could be underway in the downstream sector. Instead of building massive, investment-intensive refineries, oil companies can sign toll agreements with other companies to refine crude oil.
Toll agreements are common for liquefied natural gas projects, but rare in the downstream oil industry. Della Pelle highlights a new trend that could be underway in the downstream sector. Instead of building massive, investment-intensive refineries, oil companies can sign toll agreements with other companies to refine crude oil. Toll agreements are common in liquefied natural gas projects, but rare in the downstream oil industry. A toll contract is a contract between a company that owns raw materials and another that is responsible for processing those materials according to the owner`s specifications. In some cases, the owner may retain control over the products that result from the processing, but in other cases, the owner sells the materials to the processor, also known as Toller, using the prices set out in the terms of the agreement. In both cases, the employment relationship is generally designed to improve the financial situation of all parties involved. „Of course, they are working with an Indonesian company, but if Indonesia wants to see an increase in jobs through the oil refinery center, they will have to think about making more steel for the project,“ Della Pelle said. „But the key equipment and reactors will come from Russia. Some people will of course be involved in the construction, about 5,000, but it will be in the short term.
For the toll party, the agreement serves as a physical guarantee of the assets to cover electricity trading positions. At the same time, commercial assets can be used to extract the „level of volatility“ or upwards that could be present in the volatile gas and electricity markets, Feldman said. Squadron Energy Group`s Australian Industrial Energy Group has signed a long-term lease agreement with NSW Ports for a port site in Port Kembla, 112 km south of Sydney, for the development of the company`s LNG import terminal project. In June, Pertamina signed a toll deal with a Shell refinery in Singapore to process about 1 million barrels of Iraqi crude per month. In late August, the Jakarta-based company said it planned to process up to 1.2 million barrels of crude oil per month from Algeria and Malaysia at an overseas refinery to cut costs. You will also receive operations and maintenance payments as well as a start-up bonus for commissioning the turbine. Developers are also subject to various penalties if they do not meet the toll company`s expectations, including timely construction of the facility. Pertamina signed a toll deal with a Shell refinery in Singapore in June to process about 1 million barrels of Iraqi crude per month. .
