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.