Throughput agreement

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Throughput agreement

An agreement to put a specified amount of product per period through a particular facility. An example is an agreement to ship a specified amount of crude oil per period through a particular pipeline.

Throughput Agreement

An agreement within a company, or between a company and a transporter, to route some or all units of a product through a certain mode of transportation. This is used by energy companies; for example, an oil company may agree to use a certain pipeline or ship to transport some of its oil.
References in periodicals archive ?
In connection with the acquisition, Phillips 66 will enter into 10-year terminaling and throughput agreements that will include minimum volume commitments covering approximately 85 percent of forecasted volumes.
Explorer is willing to construct this pipeline extension if, in this binding phase of the open season process, it receives sufficient support from shippers willing to sign long-term pipeline Throughput Agreements (TAs).
In conjunction with the proposed transaction, the two companies expect to enter into 15-year throughput agreements containing minimum annual revenue commitments from HollyFrontier.
RPTL is expected to generate superior cash flows on the back of high utilisation of its facilities under throughput agreements with RIL, coupled with its strong operating efficiency and proximity to RIL's refineries in Jamnagar.
We are in the advanced stage of discussions with other producers, which are expected to result in substantial additional throughput agreements in the future.
Our terminaling services agreements are structured as either throughput agreements or storage agreements.
Results for the two segments reflect the integral function of these assets to NuStar's customers, earnings generation from throughput rate increases and prior year growth projects, the benefits of regulatory support, and the ongoing shift of NuStar's storage contracts to capacity lease arrangements with take-or-pay provisions from volumetric throughput agreements.