Chesapeake, the nation’s second largest producer of natural gas, announced that it will invest $1 billion in developing a nationwide infrastructure and network for compressed natural gas and liquid natural gas fueling stations. Additionally, Chesapeake’s new business plans hope to achieve lower energy cost to consumers, reduce dependence on foreign oil and OPEC, create job growth and contribute to a cleaner environment.
According to Chesapeake, the investment in developing a compressed natural gas and liquid natural gas vehicle infrastructure is intended to result in lower fuel prices for businesses and consumers that will be approximately $1.50-2.00 per gallon cheaper than gasoline and diesel.
“Our CNGV fund, which will be at least $1 billion in size, will represent a large and reliable source of capital to entrepreneurial companies with strong business models, validated technologies and experienced management teams focused on creating value by enhancing demand for American natural gas,” said Aubrey K. McClendon, Chesapeake’s Chief Executive Officer.
Their plans also call for a $150 million investment in Clean Energy Fuels in Seal Beach, Calif., which will provide for build-out of LNG fueling infrastructure for heavy-duty trucks at truck stops across the U.S. in an effort to create the foundation for “America’s Natural Gas Highway System.” They have also agreed to invest an additional $155 million and 50 percent ownership with Sundrop Fuels, a cellulosic biofuels company in Louisville, Colo. The venture funds construction of the largest nonfood biomass-based “green gasoline” plant in the world, projected to produce 40 million gallons of gasoline derived from natural gas and waste cellulosic materials capable for use in today’s transportation fueling systems.
“We believe the long-term solution to America’s economic and energy challenges will come from American natural resources combined with American ingenuity and innovation,” McClendon added. “Our plan lays out a clear, affordable and achievable pathway for the rejuvenation of the American economy, the further greening of our environment and the reorientation of our foreign policy away from being captive to OPEC oil dependence.”