» Subscribe Today!
More of what you want to know.
The Daily News
X

Forgot your password?
Skip Navigation LinksHome >
VOL. 127 | NO. 218 | Wednesday, November 07, 2012

Nucor, Encana Sign Natural Gas Agreement

AP

Print | Front Page | Email this story | Comments ()

CHARLOTTE, N.C. (AP)Nucor Corp. has agreed to team up with the U.S. division of Encana Corp. on a project that would provide natural gas for its steelmaking facilities. Financial terms were not disclosed.

Nucor said Tuesday that Encana will drill and operate onshore natural gas wells. Nucor will pay its share of the costs plus an additional amount of carried interest as each well is drilled, subject to caps. Either company may suspend drilling if natural gas prices fall below a predetermined threshold.

Nucor, like other manufacturing companies, is striving to take advantage of cheap natural gas to fuel its operations.

The Charlotte, N.C., company said it expects to be able to better manage its exposure in the natural gas commodities market. It also will give Nucor a competitive advantage in natural costs for its Convent, La., facility, which is scheduled to open in mid-2013.

The agreement between Nucor and Encana Oil & Gas (USA) Inc. is in addition to one signed between the two companies in 2010 for a smaller operation. Parent Encana Corp. is based in Alberta, Canada.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Sign-Up For Our Free Email Edition
Get the news first with our daily email


 
Blog Get more from The Daily News
Blog News, Training & Events
RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 56 137 4,903
MORTGAGES 88 226 6,452
FORECLOSURE NOTICES 6 25 1,504
BUILDING PERMITS 170 318 11,577
BANKRUPTCIES 65 119 5,078
BUSINESS LICENSES 27 46 1,982
UTILITY CONNECTIONS 84 227 6,693
MARRIAGE LICENSES 15 44 1,385

Weekly Edition

Issues | About

The Memphis News: Business, politics, and the public interest.