Chesapeake CEO Says Keep Gas In the U.S. and Use as a Motor Fuel

Chesapeake CEO says hopes US will not export LNG

* McClendon would rather use natgas for transportation

* Chesapeake has supply agreement to export natgas abroad

By Edward McAllister

NEW YORK, Nov 16 (Reuters) – The head of Chesapeake Energy , one of the biggest U.S. natural gas drillers, does not want the country to ship its huge gas reserves overseas, despite agreeing to supply fuel for a proposed export project.

Record U.S. natural gas production has sparked a debate about whether the resource should be used more at home, potentially for wider use in transportation, or shipped abroad to fetch higher prices on the global market.

“I want the right to export natural gas, but I am really hopeful that we never do,” said Chesapeake chief executive Aubrey McClendon during a panel discussion on natural gas vehicles in New York on Wednesday.

A string of rival liquefied natural gas (LNG) export projects have been proposed in the United States over the past year as unconventional gas production has left the country with a century’s worth of cheap supply, evaporating import needs and thinning producers’ profit margins. Continue reading

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