Southern Companys wholesale energy marketing affiliate, Southern Company Energy Marketing L.P., announced today that it has entered into a long-term coal marketing alliance with Kinder Morgan Energy Partners L.P. Under terms of the five-year agreement effective July 1, 1998, the new alliance will jointly market coal transloading, blending and storage services at Kinder Morgans Cora terminal south of St. Louis, and the Grand Rivers terminal in western Kentucky.
In addition, the alliance plans to expand the services currently available at these terminals to include a full array of physical and financial products and provide customers with customized ways to meet their individual coal and energy requirements. Both Cora and Grand Rivers are strategically located to develop as important liquid markets for buyers and sellers of coal originating in Western and Illinois Basin production areas. The coal is transported via barge, truck or rail to Midwestern and Eastern markets.
We are pleased to have the additional capability to provide our wholesale customers with lower-cost fuel supplies, a choice of emission attainment and fuel pricing options and flexible coal quality, storage and transfer services, said Southern Company Energy Marketing Chief Executive Officer Marce Fuller. Kinder Morgans reputation as an innovative, growth-oriented company specializing in owning and operating energy transportation assets is a great complement to Southern Companys non-regulated wholesale marketing activities.
The alliance with Southern Company Energy Marketing is another important step toward Kinder Morgans goal of expanding the value-added energy services we offer our customers in our midstream markets while simultaneously maximizing the utilization of the Cora and Grand River terminals, said Richard D. Kinder, CEO of Kinder Morgan. Kinder Morgans strategic assets, when combined with Southern Company Energy Marketings expertise, will offer greater value and flexibility to customers of both companies.
Southern Company Energy Marketing is a top 10 energy marketer, ranking as the second-largest power marketer and 10th-largest natural gas marketer in the country. Jointly owned by Southern Company and Vastar Resources, the company has its headquarters in Atlanta with trading floors located in Atlanta and Houston.
Kinder Morgan Energy Partners L.P. (NYSE: ENP), which has an enterprise value in excess of $2 billion, is the nations largest pipeline master limited partnership. Kinder Morgan owns and operates two high-speed coal transfer facilities, and owns and operates one of the largest product pipeline systems in the United States, serving customers in 16 states with more than 5,000 miles of pipeline and over 20 terminals. The company also owns 20 percent of the Shell CO2 Company Ltd., which produces, transports and markets CO2 for enhanced oil recovery. Additionally, Kinder Morgan owns an indirect interest in an NGL fractionator.
Southern Company (NYSE: SO), the largest producer of electricity in the United States, is the parent firm of Alabama Power, Georgia Power, Gulf Power, Mississippi Power and Savannah Electric. Based in Atlanta, Southern Company, through its Southern Energy Inc. subsidiary, supplies electricity in 10 countries on four continents. Southern Company also provides energy-related marketing, trading and technical services and Southern LINC wireless telecommunications. Its common stock is one of the 20 most widely held corporate stocks in America.