Nucor, EnCana sign deal to develop natural gas wells

Tue Nov 6, 2012 10:02am EST

Nov 6 (Reuters) - Steel producer Nucor Corp said on Tuesday it has signed a deal to develop natural gas wells with Canada's EnCana Corp that it hopes will guarantee supply for more than 20 years.

Under the terms of the deal, the companies will share costs to develop wells in the continental United States. EnCana will operate the wells, and drilling could stop if natural gas prices fell below an undisclosed threshold.

Natural gas is used in the steelmaking process.

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