Progress Energy-Kinder Morgan Enter into Coal Terminaling Services Agreement

Progress Energy Florida (NYSE:PGN) and Kinder Morgan Energy Partners, L.P. (NYSE:KMP) announced a terminaling services agreement to ensure steady coal supply to Progress.

As quoted in the press release:

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.

Click here to read the Progress Energy (NYSE:PGN) press release.