Peabody, Kinder Morgan Sign Export Agreements
Peabody has also secured a rail service agreement with Union Pacific to transport the company’s Colorado coal to Kinder Morgan’s Houston terminals. The agree-ments allow for throughput flexibility among Kinder Morgan’s Gulf Coast export terminals to serve Peabody’s international customer base. The additional capacity also supports the planned expansion of Kinder Morgan’s Gulf Coast coal handling facilities and Peabody’s development of the Sage Creek extension of the Twenty-mile mine.
Kinder Morgan will invest, including previously announced projects, approxi-mately $400 million to expand its Gulf Coast terminal network. After completion of all of the export expansion projects, Kinder Morgan’s Gulf Coast terminal network will have a coal export nameplate capacity of approximately 27 million tons per year.
Peabody has extended its existing con-tract with KMP’s HBT and will begin exporting Colorado and PRB coals from the Deepwater facility beginning in 2014. Peabody’s Illinois Basin, Colorado and PRB coals will be exported through KMP’s expanded IMT in New Orleans from 2014. An existing agreement at the Cora river ter-minal in Illinois will be extended through 2018 to facilitate exports through IMT as well as domestic sales.