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IP Mill In Cantonment Switching Natural Gas Supplier To Pensacola Energy
December 27, 2021
In 2022, the International Paper mill in Cantonment will switch natural gas suppliers to Pensacola Energy, significantly increasing revenue for the municipal utility while saving money for IP.
“Pensacola Energy offered natural gas at competitive rates and we look forward to our relationship with them,” Whitney Fike, IP communications manager, said.
“It’s not often that a gas utility gets to add a major industrial customer like that, and we are fortunate to be able to secure a supply of gas that is costing them less than their current supply,” Pensacola Energy Director Don Suarez said. “That addition of International Paper will increase our throughput, our sales, next year by about 14%.”
“Utilities are slow growth businesses, so 14% increase in one year is significant for us. So we are real excited about that,” Suarez continued.
Pensacola Energy was able to offer IP a lower natural gas price than they are currently paying because of a discount from a prepaid gas agreement, according to Kaycee Lagarde, public information officer for the City of Pensacola.
Area residents won’t see any digging, new pipes or any physical changes around the IP mill in Cantonment with the new gas supplier.
“Pensacola Energy is working through our current supplier to deliver the gas and bill International Paper, so this will be a strictly transactional change,” Lagarde said. ” No digging or pipe changes will be necessary, and the gas will flow just like it currently does through the pipeline.”
Pictured: The International Paper mill in Cantonment. NorthEscambia.com photo, click to enlarge.
Comments
4 Responses to “IP Mill In Cantonment Switching Natural Gas Supplier To Pensacola Energy”
Franchise area issue? Most utilities have designated areas for service as part of a government induced monopoly. What company provides gas now, and does it have the sole right to provide?
Wish we could get natural gas on the north end of Tate road.
I agree, it would be nice if you had a service in your location. At least during Hurricane seasons you can have Hot Water, Cook and dry your clothing.
(“When the Electric is out, even with Propane, you might need a fill and can’t get it. But the Gas keeps flowing as long as you pay your bill”.
Would be nice if every customer had a choice!!!!!!!!!!