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 ?
SGLP and the Private Company entered into a new throughput agreement pursuant to which SGLP will provide certain crude oil gathering, transportation, terminalling and storage services to the Private Company based on actual volumes transported at market rates;
SGLP and the Private Company will enter into a new throughput agreement pursuant to which SGLP will provide certain crude oil gathering, transportation, terminalling and storage services to the Private Company based on actual volumes transported at market rates;
The throughput agreement will allow Tesoro to economically deliver crude oils produced in Africa, the Atlantic region of South America and the North Sea to the company's five Pacific Rim waterborne refineries.
As part of the transaction, AmeriGas executed a long-term throughput agreement to supply propane for its retail operations.
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.