Steel Mills
Nucor Upgrades Natural Gas Supply Agreements
Written by Sandy Williams
October 4, 2016
Nucor announced Tuesday that it has restructured its natural gas supply agreements to improve access to a long-term supply of natural gas.
Nucor purchased 49 percent of Encana’s leasehold interest of 54,000 acres in the South Piceance Basin. In addition, Nucor and Encana have terminated the two Carry and Earning drilling agreements from 2010 and 2012 and Nucor has sold Encana its 50 percent interest in Hunter Ridge Energy Services.
The Piceance Basin is a tight sands formation in Northwest Colorado that lies at depths between 6,000 and 10,000 feet and is rich in natural gas.
The transaction provides Nucor full discretion on its participation in all future drilling capital investment as well as retaining all existing producing wells it currently owns. The cancelation of the drilling agreements eliminates all future carry capital and all contingent liabilities which should result in lower unit cost for any future drilling, said Nucor.
Long-term agreements have been made with existing third party gathering and processing service providers to support Nucor’s operating wells and potential well developments on the 54,000 acres.
“These transactions give both companies capital flexibility. In addition, they preserve Nucor’s long-term access to low cost gas resources in support of Nucor’s raw material strategy. We think this transaction is a win-win for both companies,” said John Ferriola, Chairman, CEO and President of Nucor.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Nucor names Batterbee, Bledsoe to HR roles
Nucor Corp. has promoted Thomas J. Batterbee to the position EVP of human resources and talent and appointed Elizabeth Bledsoe to the newly created position of president of human resources and talent.
Millett sees tariffs, CORE case benefiting SDI
Steel Dynamics' top exec thinks Trump’s tariff policies, as well as the results from the recent CORE case, will prove advantageous to the Fort Wayne, Ind.-based steelmaker and aluminum company.
USW digs in on opposition to USS-Nippon deal
“We remain deeply concerned about the national and economic security implications of the subject transaction,” the union stated in the letter dated April 21.
SDI’s Q1 earnings slump on-year, but up sequentially
SDI earnings slip in first quarter year over year, but are up sequentially.
POSCO inks MoU with Hyundai on Louisiana EAF mill
POSCO has signed a Memorandum of Understanding (MoU) with Hyundai Motor Group that includes an equity investment in Hyundai’s previously announced EAF mill set to be built in Louisiana.