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Frequently Asked Questions

Esperanza Energy – Tidelands Oil & Gas

 

Who is Esperanza Energy?

What is Tidelands Oil & Gas Corporation?

Why did Esperanza Energy choose the Long Beach site?

What is Liquefied Natural Gas (LNG)?

How will LNG be transported to the facility?

Why is Esperanza considering the use of TORP's HiLoad technology?

How will Esperanza Energy use HiLoad technology to bring the natural gas ashore?

What is HiLoad technology?

Is the LNG receiving process environmentally friendly?

How safe is the LNG regasification process?

Why would Tidelands propose a new California LNG project?

Why does Esperanza believe LNG imports are needed in California?

Will importation of LNG impact California’s goal of developing alternative energy sources?

Who will be able to access the LNG regasification services of the Esperanza facility?

How might the LNG project in Baja impact the need for another LNG import facility in California?

 

 

 

Who is Esperanza Energy?

Esperanza Energy is a subsidiary of Tidelands Oil & Gas Corporation. Esperanza Energy has plans to develop an offshore, deepwater Southern California liquefied natural gas (LNG) receiving facility approximately 15 miles off the Port of Long Beach, California. <BACK>

What is Tidelands Oil & Gas Corporation?

Tidelands Oil & Gas Corporation, headquartered in San Antonio, Texas, focuses its business on international pipeline crossings, gas processing plants and gas storage facilities. Through its eleven directly and indirectly owned subsidiaries, Tidelands offers a full suite of services and has the capability to satisfy customer needs, both domestically and internationally. For more information about Tidelands Oil & Gas Corporation, visit www.tidelandsoilandgas.com. <BACK>

Why did Esperanza Energy choose the Long Beach site?

Our team of LNG, pipeline, environmental and regulatory experts concluded that a site offshore of the Port of Long Beach offers the best location to deliver LNG to California consumers. The site will not affect Port traffic, nor will the facility itself have any visual impact along coastal communities. It will be difficult, if not impossible, to see Esperanza’s facility from shore. <BACK>

What is Liquefied Natural Gas (LNG)?

LNG is natural gas that has been condensed into a liquid by cooling it to approximately minus 260 degrees Fahrenheit and then transported in this state. Once it arrives to its processing location, LNG is warmed back into natural gas for use by consumers. <BACK>

How will LNG be transported to the facility?

LNG is transported using unique cryogenic ships that keep the product super-cooled. No major accidents involving an LNG seagoing vessel have occurred in the more than 40-year history of the global LNG industry. <BACK>

Why is Esperanza considering the use of TORP’s HiLoad technology?

Esperanza’s demanding environmental criteria for any offshore LNG technology necessitates that the receiving facility:

  • Operates with zero air emissions (i.e., runs on electricity derived from existing onshore sources, has battery backup power systems and does not involve any onboard internal combustion engines in the LNG offloading process)

  • Recycles industrial water to regasify (warm) the LNG into natural gas. Other proposed California facilities require machinery with significant emissions to achieve this same effect. Esperanza’s approach respects, rather than disrupts, the marine environment

  • Minimizes the physical profile of the offshore LNG transfer facility, making it difficult to detect from shore

  • Eliminates onsite or onshore LNG storage

  • Operates with high reliability for safe operation under demanding weather and marine conditions

TORP’s proven HiLoad technology would meet or exceed these strict environmental and operational criteria. <BACK>

How will Esperanza Energy use HiLoad technology to bring the natural gas ashore?

TORP’s patented HiLoad LNG Regas technology enables a safe and cost-efficient offshore unloading and regasification operation. The HiLoad facility attaches directly and securely to any standard LNG carrier. The gas is then injected into an undersea pipeline that transports this supply to California gas consumers. Unlike some other proposed California LNG projects, TORP’s approach eliminates the need for extensive aboveground storage tanks or large marine structures required for berthing, storage and processing. <BACK>

What is HiLoad technology?

TORP’s pioneering technology for natural gas represents an innovative application of proven technology. The HiLoad floating infrastructure itself is a new and innovative design that has been proven technically feasible and operationally sound. The components involved in LNG transfer and regasification on HiLoad floating infrastructure are all industry-standard technologies that have a proven record of high reliability and safe operation for several decades around the world.
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Is the LNG receiving process environmentally friendly?

Esperanza’s goal is to site, design and operate the safest, most environmentally responsible and economically viable facility possible. Further we are committed not to just meet the environmental, public health and safety requirements, but to exceed them.

Technical and environmental experts have meticulously scrutinized each element of the Esperanza Energy LNG receiving facility. The facility is carefully designed to avoid the undesirable environmental impacts that exist in other proposed California LNG import facilities.

The project will install its water and natural gas pipes, along with communications and electrical lines, in a horizontally drilled tunnel buried deeply under the coastal zone and, ultimately, will avoid populated areas. The tunnel depth and protective conduit casing also safeguards the coastal environment.

Emissions from LNG supply vessels docking at the facility will be minimized through the use of natural gas in marine engines whenever possible. The project will also include three small, dedicated support vessels fueled with natural gas. <BACK>

How safe is the LNG regasification process?

LNG offers several safety advantages over other energy sources. In its liquid state, LNG is odorless and non-explosive. In the extremely remote event of an accidental LNG spill, unlike oil, LNG does not result in a slick, leave any residue nor require environmental cleanup. When LNG comes in contact with air or water it converts into a gas that quickly dissipates. <BACK>

Why is Tidelands proposing a new California LNG project? 

Tidelands and its subsidiary, Esperanza Energy, support California’s efforts to secure additional sources of natural gas to enhance future energy supply and reduce price volatility. Based on our initial technical assessment, Esperanza expects that its project will be the safest, most environmentally responsible LNG import facility on the West Coast. The project’s basic design characteristics avoid many of the environmental and safety concerns confronting other proposed California LNG projects.<BACK>

Why does Esperanza believe LNG imports are needed in California?

California is at the tail end of the national gas pipeline grid and, as such, is more exposed to potential supply disruptions and price volatility that may result from production declines from current American and Canadian gas supply sources. As California moves forward with plans to reduce its dependence on electricity generated from sources such as coal, natural gas will fill this gap until alternative energy sources become commercially available on a very large scale. <BACK>

Will importing LNG impact California’s goal of developing alternative energy sources?

Esperanza supports California’s goal of developing alternative energy sources and increasing its energy efficiency programs. Most experts agree that developing such sources and programs on a scale significant enough to maintain the State’s economic growth and prosperity will take more than a decade. Clean-burning natural gas offers the most economically practical solution for maintaining California’s economic prosperity for the near future. Esperanza’s project provides California with an environmentally sound method for diversifying its supply of natural gas by importing LNG.<BACK>

Who will be able to access the LNG regasification services of the Esperanza facility?

Access to regasification services at Port Esperanza will be open to credit-worthy buyers, such as electric and gas utilities, independent power generators, gas marketers and LNG suppliers throughout the state. The access would be available to those parties involved with other West Coast LNG projects whether or not these competing projects go forward.<BACK>

How might the LNG project in Baja impact the need for another LNG import facility in California?

Over time, increasing amounts of the natural gas from the Baja facility will be required to serve growing energy markets in Mexico, as well as serve high-growth markets in Arizona and Nevada. Relying on natural gas produced in Mexico and transported on long-distance pipelines to California markets is not a practical solution to the state’s needs. The current supply problem stems from the state being at the tail end of the national gas pipeline grid. The best answer to California’s energy needs is to have access to natural gas derived from LNG just a few miles from the Southern California pipeline grid and the region’s largest energy market centers. <BACK>

 

 
 
Esperanzaenergy.com  may be deemed to contain certain forward-looking statements with respect to the Company that are subject to risks and uncertainties that include, but are not limited to those identified in the Company's press releases or discussed from time to time in the Company's Securities and Exchange Commission Filings. Actual results may vary