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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
The company has signed a long-term throughput agreement with Arch Coal (NYSE:ACI) to help support the expansion of these export facilities, including port space for coal shipments at KMP-owned facilities on the East Coast.
This pipeline will have an initial capacity of 110,000 barrels per day (bpd) with the ability to expand to over 200,000 bpd and the project is supported by a long-term throughput agreement with a credit worthy shipper
Additionally, Orion renewed a long term relationship with a third-party finance company which will sell Orion Throughput Agreement (OTA) contracts and take over back-office procedures relating to the qualifying OTA contracts' financing handled by the OAM division earlier.
In conjunction with Martin Midstream GP LLC 's existing marine terminal operations, MMLP has signed a long-term throughput agreement with MRMC for use of the Assets.