Yes, that's right
The energy released from gasoline when it is used in a gasoline engine is chemical energy.
A combustion engine converts chemical energy in gasoline to mechanical energy in the engine.
A gasoline engine converts chemical energy into mechanical energy.
Chemical Energy ---> Heat Energy ---> Mechanical Energy
Chemical Energy into Mechanical Energy
Nothing "creates" energy. The chemical energy in gasoline can be converted to electrical energy by burning the gasoline in an internal combustion engine that's connected to a generator.
The chemical energy is stored in the fuel, ie gasoline or diesel, and released when it is burned in the engine.
Water is created in the chemical reaction of gasoline 'oxidizing' (burning).
Chemical but the energy released has physical consequences.
Chemical Energy. Chemical energy is converted to thermal energy when people burn wood in a fireplace or burn gasoline in a car's engine.