Sappi's Skowhegan plant signs natural gas deal with Summit
Sappi Fine Paper's mill in Skowhegan has agreed to be an anchor customer for Summit Natural Gas of Maine, becoming the second major customer to sign on with Summit, which is competing with Maine Natural Gas for the Kennebec Valley's gas business.
The Kennebec Journal reported today that Sappi joins Huhtamaki Inc. in Fairfield and Waterville in signing an "agreement in principle" with Summit, which announced Tuesday that it will begin construction of its natural gas transmission and distribution system in Kennebec Valley in early May.
Summit is scheduled to begin construction of its natural gas transmission and distribution system early next month, according to a statement released Tuesday.
The announcement comes on the heels of last week's news that Boston-based Xpress Natural Gas and Iberdrola subsidiary Maine Natural Gas have signed a letter of intent to cooperate in expanding natural gas service in the Augusta region before a natural gas pipeline is constructed. Through the agreement, Maine Natural Gas will provide piped gas to XNG. XNG will then truck the gas to customers in the area.
Huhtamaki plant manager Ray McMullin told the newspaper that his company has been "negotiating and discussing natural gas supply arrangements" with both companies over the past few months. McMullin said Summit expected to be able to supply natural gas to his plants by early 2014.
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