Chesapeake Energy plans to spend $1 billion over the next ten years to help increase natural gas demand. The first investment is in Clean Energy Fuels Corp to help increase the number of liquified natural gas (LNG) fueling stations. The second investment is in Sundrop Fuels, a company that specializes in making gasoline from natural gas and cellulosic waste. This will likely just scratch the surface of what is needed if natural gas is really going to become the fuel of choice in the U.S.
“Chesapeake Energy Corp (CHK.N) plans to spend as much as $1 billion over the next decade investing in companies and technologies to replace gasoline and diesel with fuels derived from abundant natural gas.”"Chesapeake and others are finding it necessary to create a market for natural gas as advances in technology such as hydraulic fracturing unlock vast supplies, while demand growth has not kept pace.”
“Chesapeake, the second largest U.S. natural gas producer behind Exxon Mobil Corp (XOM.N), has a long road ahead. There are only about 120,000 vehicles that run on compressed natural gas in the United States and the infrastructure to support them is in its infancy.”
” ‘The goal is to take 8 million trucks in the U.S. and get those trucks off diesel,’ Aubrey McClendon, Chesapeake’s chief executive officer, told Reuters in an interview. ‘That’s a transformation that will happen throughout the rest of my life.’ “
Read the complete news release at reuters.com