Foreign Experience of Applying the Principle of "Pump or Pay" in the Field of Pipeline Transportation

This article reveals the practice of "ship or pay" principle in the US, Canada and Europe. The authors analyze the practice of concluding contracts for oil and petroleum products transportation, procedures, terms and conditions stipulated in the contract. The "take or pay" princi...

Descripción completa

Guardado en:

Detalles Bibliográficos
Autores principales:	V. I. Salygin, I. A. Guliyev, A. O. Khubaeva
Formato:	article
Lenguaje:	EN RU
Publicado:	MGIMO University Press 2015
Materias:	transportation oil petroleum products oil pipeline petroleum products pipeline International relations JZ2-6530
Acceso en línea:	https://doaj.org/article/d67b70a5fa3940e295a967dd5c5cde5f
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai:doaj.org-article:d67b70a5fa3940e295a967dd5c5cde5f
record_format	dspace
spelling	oai:doaj.org-article:d67b70a5fa3940e295a967dd5c5cde5f2021-11-23T14:51:00ZForeign Experience of Applying the Principle of "Pump or Pay" in the Field of Pipeline Transportation2071-81602541-909910.24833/2071-8160-2015-4-43-46-52https://doaj.org/article/d67b70a5fa3940e295a967dd5c5cde5f2015-08-01T00:00:00Zhttps://www.vestnik.mgimo.ru/jour/article/view/400https://doaj.org/toc/2071-8160https://doaj.org/toc/2541-9099This article reveals the practice of "ship or pay" principle in the US, Canada and Europe. The authors analyze the practice of concluding contracts for oil and petroleum products transportation, procedures, terms and conditions stipulated in the contract. The "take or pay" principle is a common practice in developed countries like the US, Canada and the UK. The specific feature of the United States is that the pipelines are not built only for one shipper, but rather for all market, which is caused the "open season" tradition. In Canada, "take or pay" principle applies to cover the capital costs of the carrier. The main reasons for usage of terms "take or pay" are to minimize risks of the carrier, building or expanding his own pipeline network, by guaranteeing shipper's financial benefits after the putting pipeline into operation. "Take or pay" contracts cover the carrier's obligation to provide agreed minimum amount of petroleum to the consignor within a certain period. In turn, the shipper is obliged to accept the minimum amount of petroleum and pay, regardless of the fact of acceptance of oil. "Take or pay" principle is a kind of risk-sharing mechanism, which allows to shift the risks of non-fulfillment of the contract to the shipper. Besides, the "take or pay" principle can be indirect guarantee in the context of project financing, and therefore, financing. The article emphasizes the main advantages of the application of this principle and opportunities for its use in Russia.V. I. SalyginI. A. GuliyevA. O. KhubaevaMGIMO University Pressarticletransportationoilpetroleum productsoil pipelinepetroleum products pipelineInternational relationsJZ2-6530ENRUVestnik MGIMO-Universiteta, Vol 0, Iss 4(43), Pp 46-52 (2015)
institution	DOAJ
collection	DOAJ
language	EN RU
topic	transportation oil petroleum products oil pipeline petroleum products pipeline International relations JZ2-6530
spellingShingle	transportation oil petroleum products oil pipeline petroleum products pipeline International relations JZ2-6530 V. I. Salygin I. A. Guliyev A. O. Khubaeva Foreign Experience of Applying the Principle of "Pump or Pay" in the Field of Pipeline Transportation
description	This article reveals the practice of "ship or pay" principle in the US, Canada and Europe. The authors analyze the practice of concluding contracts for oil and petroleum products transportation, procedures, terms and conditions stipulated in the contract. The "take or pay" principle is a common practice in developed countries like the US, Canada and the UK. The specific feature of the United States is that the pipelines are not built only for one shipper, but rather for all market, which is caused the "open season" tradition. In Canada, "take or pay" principle applies to cover the capital costs of the carrier. The main reasons for usage of terms "take or pay" are to minimize risks of the carrier, building or expanding his own pipeline network, by guaranteeing shipper's financial benefits after the putting pipeline into operation. "Take or pay" contracts cover the carrier's obligation to provide agreed minimum amount of petroleum to the consignor within a certain period. In turn, the shipper is obliged to accept the minimum amount of petroleum and pay, regardless of the fact of acceptance of oil. "Take or pay" principle is a kind of risk-sharing mechanism, which allows to shift the risks of non-fulfillment of the contract to the shipper. Besides, the "take or pay" principle can be indirect guarantee in the context of project financing, and therefore, financing. The article emphasizes the main advantages of the application of this principle and opportunities for its use in Russia.
format	article
author	V. I. Salygin I. A. Guliyev A. O. Khubaeva
author_facet	V. I. Salygin I. A. Guliyev A. O. Khubaeva
author_sort	V. I. Salygin
title	Foreign Experience of Applying the Principle of "Pump or Pay" in the Field of Pipeline Transportation
title_short	Foreign Experience of Applying the Principle of "Pump or Pay" in the Field of Pipeline Transportation
title_full	Foreign Experience of Applying the Principle of "Pump or Pay" in the Field of Pipeline Transportation
title_fullStr	Foreign Experience of Applying the Principle of "Pump or Pay" in the Field of Pipeline Transportation
title_full_unstemmed	Foreign Experience of Applying the Principle of "Pump or Pay" in the Field of Pipeline Transportation
title_sort	foreign experience of applying the principle of "pump or pay" in the field of pipeline transportation
publisher	MGIMO University Press
publishDate	2015
url	https://doaj.org/article/d67b70a5fa3940e295a967dd5c5cde5f
work_keys_str_mv	AT visalygin foreignexperienceofapplyingtheprincipleofpumporpayinthefieldofpipelinetransportation AT iaguliyev foreignexperienceofapplyingtheprincipleofpumporpayinthefieldofpipelinetransportation AT aokhubaeva foreignexperienceofapplyingtheprincipleofpumporpayinthefieldofpipelinetransportation
_version_	1718416304571940864

Foreign Experience of Applying the Principle of "Pump or Pay" in the Field of Pipeline Transportation

Ejemplares similares