Up to 4 million tons of coal a year will be moved through Kinder Morgan Energy Partners’ terminal north of Plaquemine under a 10-year agreement with Progress Energy Florida, according to the companies.
The deal is designed to facilitate for Progress Energy’s power plant in Citrus County, Fla.
In recent years, foreign countries’ demand for coal has resulted in an increasing portion of U.S. terminals being allocated to exporters, according to Progress Energy. The long-term contract for terminal services at Kinder Morgan’s Myrtle Grove facility is an important part of Progress’s ability to fuel the power plant.
The deal gives Progress more flexibility in shipping domestic coal to the power plant. The agreement covers 10 years, with options for up to 20 years.
The coal will be delivered by river barge or other means to Myrtle Grove, where it will be stored, combined and delivered for barge delivery across the Gulf of Mexico to the Progress power plant in Florida.