Lincoln Paper and Tissue, LLC signs Natural Gas Pipleline Transportation Agreement
Lincoln, Maine, USA 08 June 2013 -- Lincoln Paper and Tissue (LPT) signed a contract with Bangor Gas that will provide pipeline gas to the mill operations in Lincoln, Maine. Pipeline service to the mill will commence in late 2014 and will provide clean natural gas for tissue drying and the lime kiln process. LPT has taken many steps over the years to improve its energy and environmental performance. Some of the most recent include a project done in conjunction with Massachusetts based Xpress Natural Gas (XNG) that converted tissue drying hoods from No. 2 fuel oil to liquefied natural gas in February 2012. In August, LPT will take the next step by converting the tissue hoods and lime kiln to compressed natural gas (CNG), also with XNG. This step will eliminate nearly all oil usage for process purposes.
Keith Van Scotter, CEO of Lincoln Paper and Tissue, said “We worked very hard with Bangor Gas to achieve a mutually beneficial agreement and we want to thank them for their diligence and commitment in getting the deal completed. The pipeline will also form the foundation for natural gas supply to the Lincoln area.” He continued, “We also want to thank Xpress Natural Gas for the excellent support that they provided us during the three year transition from high cost oil to lower cost pipeline natural gas.”
Natural gas in the U.S. is the most economical fuel for industrial uses and heating, and supply to LPT will improve the competitive situation for the mill.
Jerry Livengood, General Manager of Bangor Gas, said “The investment that Bangor Gas is making demonstrates our commitment to provide clean and cost effective energy to the Penobscot Valley. We look forward to working with Lincoln Paper and Tissue as they complete their transition to pipeline natural gas. The mill will provide an anchor to bring gas into the town of Lincoln, and we also look forward to working with the residents and businesses as we expand.”