SunCoke Energy Partners LP (NYSE: SXCP) announced Oct. 19 that it is piloting a new line of business at its Convent Marine Terminal (CMT) with an unnamed U.S. utility customer to transload thermal coal destined for the domestic marketplace.
SunCoke recently received its first in-bound train and estimates the potential Q4 2016 opportunity to be 50,000 to 100,000 tons of throughput. Any future volumes will be shipped on a merchant basis and are subject to customer needs. Since its acquisition by SunCoke in August 2015, Convent Marine Terminal has predominantly handled export-bound thermal coal on behalf of Illinois Basin coal miners, and this pilot marks SunCoke’s entrance into the domestic marketplace.
“We’re excited to announce our expansion into the domestic thermal coal market at Convent,” said Fritz Henderson, Chairman, President and Chief Executive Officer of SunCoke Energy Partners. “While we’re still in the early stages of this initiative, we look forward to working collaboratively with our new customer in supporting their logistics needs.”
In addition, SXCP announced it is in the final stage of commissioning its new, state-of-the-art shiploader, and expects it to be fully operational by the end of November. This is the largest fixed-tower shiploader in the world and will increase the terminal’s annual loading capacity by 50% to 15 million tons.
Henderson added: “We are proud of the work done by our people to finish the final phase of our modernization program, and look forward to further broadening the range of products and services we provide at Convent with the goal of securing additional new business.”
The Convent Marine Terminal is one of the largest terminals on the U.S. Gulf Coast and the only one in the region that provides direct rail access and is dredged to accommodate cape-sized ocean vessels. Its location on the Lower Mississippi River, 1.5 million tons of ground storage and unique inbound and outbound capabilities provide options for transloading a range of bulk materials and liquids.
SXCP’s network of coal logistics terminals is strategically located to reach Gulf Coast, East Coast, Great Lakes and international ports, and has 40 million tons of annual transloading capacity. Its assets, coal blending expertise and unique access to the Norfolk Southern, Canadian Northern and CSX Transportation rail networks offer flexibility and efficiency for receiving and delivering coal by river barge, ocean vessel, truck and rail.
SunCoke Energy Partners is a publicly traded master limited partnership that manufactures high-quality coke used in the blast furnace production of steel and provides export and domestic coal handling services to the coke, coal, steel and power industries. SXCP’s General Partner is a wholly owned subsidiary of SunCoke Energy Inc. (NYSE: SXC), which has more than 50 years of cokemaking experience serving the integrated steel industry.