Chesapeake to spend $1b on natural gas technology

AP News
Posted: Jul 11, 2011 4:01 PM
Chesapeake to spend $1b on natural gas technology

Chesapeake Energy, the nation's second largest producer of natural gas, plans to invest $1 billion over 10 years in technologies designed to spur demand for the fuel.

U.S. natural gas supplies have grown dramatically in recent years as drillers like Chesapeake have learned to tap huge fields of gas trapped in shale formations deep under several states.

Chesapeake, based in Oklahoma City, said Monday that it will invest $150 million in Clean Energy Fuels Corp., based in Seal Beach, Calif., to build natural gas fueling stations at truck stops.

Chesapeake also agreed to spend $155 million for a 50 percent stake in Sundrop Fuels Inc., based in Louisville, Colo. Sundrop uses natural gas and plant materials to create liquid fuels like diesel and gasoline.