RPT-UPDATE 1-GE, Chesapeake team up to boost nat gas as transportation fuel

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March 7 (Reuters) - U.S. multinational conglomerate General Electric and Chesapeake Energy Corp said they will collaborate to accelerate the use of natural gas as a transportation fuel.

Under the multi-year collaboration, GE will provide more than 250 compression stations beginning in the second-half of 2012. These units will be used to expand access to compressed natural gas (CNG) at fueling stations and other designated installations.

Compressed natural gas is most commonly used in vans, taxicabs, refuse and delivery trucks.

The companies will also look to improve access to liquefied natural gas, which is commonly used for heavy-duty industrial purposes.

U.S. natural gas output has soared to record levels and prices have fallen to decade-lows as the energy industry has plowed billions of dollars into developing shale rock fields that were once too difficult and expensive to tap. (Reporting by Swetha Gopinath in Bangalore; Editing by Sriraj Kalluvila)