Throughput agreement


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Related to Throughput agreement: Take or Pay Agreement

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 ?
Pursuant to the throughput agreement, MRMC will continue to own all inventory and working capital elements of the fuel and lubricant distribution business which is consistent with current and past practice.