Tamilnadu Petroproducts ties up with Shell Trading

Tamilnadu Petroproducts Ltd has announced that the Company has entered into a master swap agreement with Shell International Trading and Shipping, a move that would help the Company to manage price risks associated with feedstocks such as kerosene, benzene, fuel oil and paraffin.

The Company uses these feedstock to make linear alkylbenzene, an intermediate petrochemical used in LAS (linear alkylbenzene suplhonate) which in turn, has applications in detergents and cleaning products.

Mr. Muthukaruppan, MD and COO of the Company, said the agreement would enable the Company to offer longer term fixed price sales of LAB. The master swap agreement provides a framework between contracting parties for their entry into energy-related derivatives such as swaps and options. It sets out trading terms and procedures and terms for the management of counter-party credit risk, the Company said in a statement.

Source : Equity Bulls

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