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
SMU Community Chat: Algoma’s CEO talks prices, decarb, raw materials
Algoma Steel’s CEO Michael Garcia joined SMU Managing Editor Michael Cowden for a Community Chat on Wednesday, Nov. 29. A great discussion was had on topics ranging from plate pricing to decarbonization efforts, raw materials strategies, and more.
U.S. Steel bids due on Friday: Sources
Bids for U.S. Steel are due on Friday, according to sources familiar with the matter. Friday is also allegedly when a non-disclosure agreement (NDA) between Cleveland-Cliffs Inc. and the Pittsburgh-based steelmaker expires.
Worker dies at Nucor Steel Indiana
A contract worker suffered a fatality on Friday, Nov. 24, at Nucor Steel Indiana’s Crawfordsville sheet mill.
USS idles iron, steelmaking ‘indefinitely’ at Granite City Works
U.S. Steel said it has indefinitely idled steelmaking at its Granite City Works in southern Illinois near St. Louis.
Hybar locks in 16 cranes for new Arkansas mill
Hybar's new rebar mill is set to be outfitted with 16 cranes of various capacities, according to a news release from Finnish crane manufacturer, Konecranes.