OKLAHOMA CITY--(BUSINESS WIRE)--Nov. 29, 2012-- Peake Fuel Solutions, L.L.C., a wholly-owned subsidiary of Chesapeake Energy Corporation (NYSE:CHK), today announced the development of a new, transformative diesel natural gas (DNG) conversion kit, a product that will help heavy-duty truck operators save up to 30% on their fuel costs.
DNG allows trucks to run on a mixture of diesel and up to 70% clean, affordable, abundant, American natural gas. When compressed natural gas (CNG) or liquefied natural gas (LNG) fuels are not available, trucks retain the ability to run on 100% diesel.
“The trucking industry is the backbone of our nation’s economy, and Peake Fuel Solutions’ DNG technology can help the industry slash its biggest cost — fuel,” said Kent Wilkinson, Vice President – Natural Gas Ventures, Chesapeake. “DNG will help accelerate the trucking industry’s shift to a more affordable, domestic fuel.”
Long-term natural gas prices in the $4-6 per mcf range will translate into CNG and LNG prices of around $2.00 per diesel gallon equivalent, or about 50% lower than diesel prices. Assuming a typical DNG blend, truckers would save approximately $0.20 per mile on their fuel costs.
Peake’s innovative conversion kit has been approved by the U.S. Environmental Protection Agency (EPA) for a variety of engines. The certificate of conformity makes it the only dual-fuel natural gas retrofit certified by the EPA, allowing DNG kits to modify a variety of engines from model years 2010-12 that encompass power ratings from 400 to 600 horsepower.
Peake has begun accepting pre-orders for DNG kits, with widespread commercial availability expected in the first quarter of 2013. Fleet and truck owners can email email@example.com to learn more.
Natural gas is a reliable and cleaner-burning source of fuel for consumers of gasoline and diesel, and the return on investment for a DNG conversion kit is typically less than 18 months. Interested DNG customers can calculate their expected fuel savings and the timeline for investment payback through an online calculator at www.peakefuelsolutions.com.
Additionally, Peake offers complete natural gas fueling solutions including the unique CNG In A Box™ system, a fully integrated CNG fueling supply system offering plug-and-play simplicity for fleet and retail fueling stations; CNG fuel management modules; and fuel tank modules in frame-rail and behind-cab configurations.
Peake Fuel Solutions advances innovative fuel solutions with products and services that use clean, affordable, abundant natural gas. A significant focus of Peake is to increase CNG and LNG infrastructure across the U.S. An affiliate of Chesapeake Energy Corporation, Peake leverages the expertise of other Chesapeake affiliates to implement many of its fuel solutions. Further information is available at www.peakefuelsolutions.com.
Chesapeake Energy Corporation (NYSE:CHK) is the second-largest producer of natural gas, a Top 15 producer of oil and natural gas liquids and the most active driller of new wells in the U.S. Headquartered in Oklahoma City, the company's operations are focused on discovering and developing unconventional natural gas and oil fields onshore in the U.S. Chesapeake owns leading positions in the Eagle Ford, Utica, Granite Wash, Cleveland, Tonkawa, Mississippi Lime and Niobrara unconventional liquids plays and in the Marcellus, Haynesville/Bossier and Barnett unconventional natural gas shale plays. The company also owns substantial marketing and oilfield services businesses through its subsidiaries Chesapeake Energy Marketing, Inc. and Chesapeake Oilfield Services, L.L.C. Further information is available at www.chk.com where Chesapeake routinely posts announcements, updates, events, investor information, presentations and news releases.
Source: Chesapeake Energy Corporation
Chesapeake Energy Corporation
Bob Jarvis, 405-935-2572