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.
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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.
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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.
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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.
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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.
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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:
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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
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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.
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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.
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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.
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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.
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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.
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