Chesapeake Energy Corp. (CHK) will invest $1 billion over 10 years to develop the technology and infrastructure needed to keep up with the demand for natural gas powered vehicles. The investment will fund 150 natural gas fueling stations along major trucking corridors.
Chesapeake will invest the capital through its wholly-owned subsidiary, Chesapeake NG Ventures Corporation (CNGV.)
The three key components of the plan include:
1. Increasing domestic production of oil and natural gas by 3-4mm barrels per day over 10 years.
2. Building a compressed natural gas and liquefied natural gas infrastructure by investing $150 million in Clean Energy Fuels (CLNE), accelerating the possibility of a natural gas superhighway.
3. Investing $155 mm for a 50% stake in Sundrop Fuels, a private company that combines non-food biomass waste with natural gas to provide a natural gas equivalent.
“There is clearly ample demand for the benefits of abundant, affordable and American natural gas among consumers who face the high costs of OPEC oil at the fuel pump every day, especially America’s truckers and goods and product shippers,” said Aubrey K. McClendon, Chesapeake Energy’s CEO. “We are investing our capital in Clean Energy to accelerate the delivery of the natural gas fueling infrastructure needed to assure truck operators that they can transition away from high-priced diesel, the cost of which is set by foreign oil, and choose a better road powered by American natural gas.”
To read more about the investment, click here