The base ten-year agreement begins in 2013 with options for up to 20 years, and KMP’s marine terminal in Myrtle Grove, Louisiana, will handle up to four million tons of coal per year.
The coal will be supplied from Central Appalachian or Illinois Basin regions by river barge or other means to KMP’s facility in Citrus County.
There the coal will be stored, combined and delivered for barge delivery across the Gulf of Mexico to the Crystal River facility, where Progress Energy operates four coal units with a total generating capacity of 2,311MW.
