SEAL BEACH, CA -- Chesapeake Energy Corp., the nation’s second largest natural gas producer, said it is investing $150 million in Clean Energy Fuels Corp., North America’s largest provider of natural gas fuel for transportation.
“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,” said Aubrey K. McClendon, CEO of Chesapeake Energy.
The investment will help fund development of approximately 150 LNG truck fueling stations at strategic truck-stop locations along major trucking corridors to form the backbone of “America’s Natural Gas Highway.” Chesapeake is the sole investor in the transaction. The company will make the investment through its newly formed, wholly owned subsidiary, Chesapeake NG Ventures Corp. (CNGV).
“With the advent of new natural gas truck engines well-suited for heavy-duty, over-the-road trucking, it is time to build America’s Natural Gas Highway,” said Andrew J. Littlefair, president and CEO of Clean Energy. “The investment by Chesapeake will help us accelerate the development of this important fueling network.”
“This new initiative is in addition to our growing development program of stations serving local fleets in the refuse, transit, airport, municipal and regional trucking markets around the country,” added Littlefair.
Many of the LNG fueling stations will be co-located at Pilot-Flying J Travel Centers already serving goods movement trucking across the country. Clean Energy has an agreement with privately held Pilot Travel Centers LLC of Knoxville, Tenn., to build, own and operate public access, compressed and liquefied natural gas fueling facilities at agreed-upon Pilot-Flying J travel centers.
Pilot-Flying J is a major operator of travel centers, with over 440 retail properties in more than 40 states.