As used in project financing, this is an agreement to purchase all or a substantial part of the output or product produced by a project. Depending on the nature of the project, this agreement can take the form of a purchase agreement or a service contract. For example, a power plant would have a power purchase agreement. By contrast, if the project is an oil or gas pipeline, the agreement would be a gas or oil transportation agreement.

For more information on these agreements, see Practice Notes, Offtake Agreements: Issues and Considerations and Change in Law in Offtake Agreements. For examples of offtake agreements that may be used in a project finance transaction, see: