What is the Destination Clause?

Destination clause in Gas contracts means that buyer does not right to resell the purchased cargo in another area except what is agreed in agreement.This clause as a inflexibility on behalf of seller had always been discussed between both sides .However the rigidity of this clause depends on bargaining power of each one.The most important point about the destination clause is that how does it affect seller's profit?On the other word, in what case the seller can neglects the destination clause without his profit to be affected.Since destination clause lead to market discrimination so it would be increased the seller's profit but some studies indicate that if demand elasticity and transportation cost are homogenous in two regions, seller can ignore the destination clause because of it will not affect profit function.Nowadays sellers show more flexibility in this regard but destination divert is still subject to seller's admission and sharing the profit due to this changing.