Rayonier Advanced Materials : Southern Natural Gas Company Cancels Force Majeure Declaration

(RTTNews) - Rayonier Advanced Materials Inc. (RYAM) announced that the force majeure declared by its natural gas provider, Southern Natural Gas Company, L.L.C., due to an unscheduled outage of the Elba Express Pipeline's Hartwell Compressor Station has been cancelled.

Rayonier noted that the event impacted natural gas supply to its facility in Jesup, Georgia, and has resulted in an estimated $4 million EBITDA impact to the Company.

Earlier this week, Rayonier Advanced said it expected the event could reduce EBITDA by approximately $775,000 to $900,000 per day. Accordingly, if the SNG Force Majeure Event were to continue through the end of 2022, the Company estimated that its aggregate EBITDA would be approximately $6 to $7 million lower than it otherwise would have been without the financial penalty. The company's facility at Fernandina Beach, Florida was not affected by the SNG Force Majeure Event.