Natural-Gas Price Spike Could Cost International Paper More Than $40 Million -- WSJ

Dow Jones02-27

By Ryan Dezember

Natural-gas bills are busting budgets all over the country following recent winter storms-including at some of America's biggest manufacturers.

International Paper, which was plagued by gas curtailments at its plants in Texas and surging prices at other containerboard mills and box plants, warned investors during the storm that the bad weather could cost it $20 million to $25 million. "It will definitely be bigger than that because of natural gas," Chief Executive Andy Silvernail said at an investor conference today. "Probably in the $40 million to $50 million range is my guess."

Manufacturers including International Paper say they are at a disadvantage to exporters of liquefied natural gas, or LNG, who use their long-term supply deals with overseas buyers to turn around and lock up space on pipelines. When domestic demand surges during winter storms and summer heat waves, factories are increasingly cut off or forced to pay sky-high spot prices for natural gas.

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February 26, 2026 16:15 ET (21:15 GMT)

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