New LNG proposal for Long Beach

Heeding calls from Long Beach officials that any liquefied natural gas facility should not be in the heart of the City, a new proposal solves the problem by going offshore.

Tidelands Oil & Gas Corp. said it was weighing a liquefied natural gas project off the coast of Long Beach, making it the fifth company to propose such a facility in Southern California.

The small San Antonio-based company, which is pursuing a smattering of natural gas projects, announced its intentions Tuesday but declined to offer details except to say that the sites under consideration for building a terminal are as many as 12 miles away from the shores of Long Beach.

"We're very far along," said Michael Ward, president of Tidelands and Esperanza Energy, a California subsidiary created for the enterprise. "We're in the 'fatal flaw' analysis of our project."

...California is more dependent on natural gas than many states because nearly half of its electricity comes from gas-fired plants. The state consumes an average of 6 billion cubic feet of natural gas each day — and imports 87% of it from elsewhere in the United States, according to the California Energy Commission.

As the state's energy needs grow, so will demand for natural gas imports. State energy officials believe that will require liquefied natural gas, which is liquefied by chilling it to minus 260 degrees Fahrenheit, compressing it so it can be carried long distances by tanker ships. At the unloading point, a "regasification" facility converts the liquid back into a gas, which is carried by pipeline to power plants and other users.

Last month, Woodside Energy of Australia unveiled plans to build a receiving terminal in the ocean about 22 miles south of Malibu. That design calls for regasification to take place onboard specially designed ships. The gas would then be piped to shore, eliminating the need for a regasification structure.

BHP Billiton of Australia, Crystal Energy and a partnership between ConocoPhillips and Mitsubishi Corp. also have announced proposals for liquefied natural gas projects in Southern California. Excelerate Energy, based in the Woodlands, Texas, is considering building a gas project off California but hasn't said where.

Shell Oil Co., Chevron Corp. and Sempra Energy are involved in liquefied gas projects along the Western coast of Baja California.