Nucor Corp. has announced singing a long-term deal with Ecana Oil & Gas USA Inc. for generating an onshore natural gas drilling program that will provide a reliable, low-cost supply of the fuel for nearly 20 years.
A producer of carbon- and alloy-steel products, Nucor, is a self-described “substantial consumer†of natural gas at its facilities located in the U.S. and Canada.
Apart from its share of costs, Nucor will have to pay an additional amount of carried interest with the drilling of each well, as per the deal.
In case prices of natural gas dip below a predetermined threshold, either party will be able to suspend drilling.
Encana will serve as the operator offering expertise to drill, complete and operate the wells.
A producer of carbon- and alloy-steel products, Nucor, is a self-described “substantial consumer†of natural gas at its facilities located in the U.S. and Canada.
Apart from its share of costs, Nucor will have to pay an additional amount of carried interest with the drilling of each well, as per the deal.
In case prices of natural gas dip below a predetermined threshold, either party will be able to suspend drilling.
Encana will serve as the operator offering expertise to drill, complete and operate the wells.