General Electric Co. (GE) and Chesapeake Energy Corp. (CHK), the second-biggest U.S. natural-gas producer, will collaborate on products and services to fuel cars and trucks with domestically-produced natural gas.
The companies intend to have a multi-year collaboration that will improve access to compressed natural gas, which is most commonly used in taxicabs, transit buses and cars and liquefied natural gas, which is commonly used for heavy-duty industrial purposes, according to a statement today.
The infrastructure will allow the U.S. to better utilize natural gas being produced from shale formations, the companies said.
“Dependence on foreign energy sources can be reduced while simultaneously lowering fueling costs and vehicle emissions,” according to the statement.
As an early step, GE, based in Fairfield, Connecticut, will provide more than 250 modular compression stations in this year’s second half, the companies said today in a statement.
Natural gas can reduce fuel costs as much as 40 percent, based on gasoline at $3.50 a gallon and compressed natural gas selling for the equivalent of $2.09 a gallon, according to the statement.
Chesapeake, based in Oklahoma City, is the second-largest U.S. gas producer behind Exxon Mobil Corp., according to data compiled by Bloomberg.
To contact the reporter on this story: Jim Polson in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Susan Warren at email@example.com