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 ?
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).
Liberty Pipeline will have initial capacity of 75,000 barrels per day, which will be committed to Copano and Energy Transfer (50% each) under firm throughput agreements.
The Partnership will retain Farm & Home's core business of distributing refined petroleum products, including gasolines and distillates, to wholesale customers through five terminals owned by Farm & Home in eastern and central Pennsylvania and pursuant to throughput agreements at terminals owned by the Partnership and third parties.
We are in the advanced stage of discussions with other producers, which are expected to result in substantial additional throughput agreements in the future.
Maritrans will offer this terminal for product storage, both under product throughput agreements and under product exchange agreements as part of a distribution arrangement which includes marine transportation.
Our terminaling services agreements are structured as either throughput agreements or storage agreements.
This will, in turn, push companies to explore exchange and throughput agreements because of the limited tankage available in certain key locations in the Northeast.
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.
The expansion is fully supported by long- term throughput agreements.