throughput contract

Definition

Type of take-or-pay contract used mainly in oil and gas industry, often as an indirect guaranty for project financing. In this arrangement, a party (usually a group of producers) undertakes to pass (put through) an agreed minimum amount of material (such crude or refined oil or gas) through a processing plant (called a processing agreement) or a pipeline (called a pipeline agreement) during a fixed period (month, quarter, year). Also called throughput agreement. See also tolling contract.

单词	throughput contract
释义	throughput contract Definition Type of take-or-pay contract used mainly in oil and gas industry, often as an indirect guaranty for project financing. In this arrangement, a party (usually a group of producers) undertakes to pass (put through) an agreed minimum amount of material (such crude or refined oil or gas) through a processing plant (called a processing agreement) or a pipeline (called a pipeline agreement) during a fixed period (month, quarter, year). Also called throughput agreement. See also tolling contract.
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