FRANKFORT, Ky. (Aug. 15, 2012) — Thanks to a new private-sector agreement, Kentucky coal will help provide affordable, reliable energy to one of the world’s fastest-growing economies for the next 25 years, Gov. Steve Beshear announced today.
New Jersey-based FJS Energy LLC signed a 25-year, $7 billion dollar contract with India’s Abhijeet Group to purchase coal exports from Kentucky and West Virginia through Kentucky-based affiliates FJSE Marshall Inc. and FJSE River Coal.
“It’s no secret that the coal industry is in a state of flux in America, what with erratic market conditions, the uncertain regulatory atmosphere and the ever-changing energy picture. But international markets need coal, and this private partnership is a great example of a new market for Kentucky resources,” Beshear said.
For the announcement, Beshear was joined by Energy and Environment Cabinet Secretary Len Peters, Cabinet for Economic Development Secretary Larry Hayes, and Rep. Keith Hall, chair of the House Energy Subcommittee as well as representatives from FJS Energy, Abhijeet Group, Booth Energy Group and River Trading Company.
India needs additional energy sources to produce steel and generate electricity. Under the agreement, Kentucky coal companies will export about 9 million tons of coal per year to the Abhijeet Group. While India does produce coal, domestic production can’t keep up with demand.
“The deal with the Indian group, besides strengthening trade and business relationship between both the countries, will benefit both the companies optimally,” said FJS Energy’s chairman of the Board and former Chairman of Coal India, Dr. M.P. Narayanan. “Abhijeet Group is a marquis client for coal producers and suppliers in U.S. and is one of the fastest growing companies in India. FJS Energy is a reliable partner in supplying the needs of its growing list of satisfied clients.”
“Our energy team looks forward to working with our India counterparts to provide access to the coal reserves in Kentucky,” said Jim Booth of Booth Energy. “We are very pleased that we have forged a partnership that meets their demand abroad and creates and sustains Kentucky jobs.”
The origins of River Trading Company go back more than 100 years, according to John Grantham, vice president of East Division of River Trading Company.
“As owners and operators of five mid-stream assets on the U.S. inland river system, we realize the significant potential to provide high quality Kentucky and West Virginia coal to India for years to come,” he said. “Since the U.S. coal industry is moving from being a swing supplier to a steady provider to the international market, we look forward to India being a big part of that growth.”