In recent years, and due to higher demand, an increasing portion of domestic terminal capacity has been allocated to coal exporters. This contract is an important part of Progress Energy’s ability to fuel the Crystal River power plant to meet customer electricity demand for the long-term. The contract will also provide savings for Progress Energy Florida customers by enabling more flexibility in transporting domestic coal to the power plant.
Under the contract, KMP’s International Marine Terminal in Myrtle Grove, La., will handle up to 4 million tons of coal per year. The base 10-year agreement commences in 2013 with options for up to 20 years. The coal will be delivered from Central Appalachian or Illinois Basin regions by river barge or other means to KMP’s facility. There it will be stored, combined and delivered for barge delivery across the Gulf of Mexico to Crystal River, where Progress Energy Florida operates four coal units totaling 2,311 megawatts.