Panama channel weighs the pipeline to move the gas, while looking at Asian customers

Written by Elida Moreno

Panama City (Reuters) – The director of the channel, Ricoar Vasquez, said on Monday that the Panama channel explores the construction of a pipeline to move LNG (LPG) via the commercial corridor.

Why is this important

The channel, one of the most maritime trade clips in the world, is looking to diversify its operations after obtaining the green light in the court’s ruling last year. Limited droughts and channel officials plan to build a nearby tank.

Japan is one of the largest LNG customers in the world, using fuel for local and industrial use.

Main quote

“We explore the possibility of offering infrastructure with the ability to move to a million barrels per day (BPD), but the market is much larger,” Vasquiz told Reuters in the wake of a press conference.

“Meet the needs of the growing volumes (gas) through Panama are a higher priority, but also from the highest complexity,” Vasquiz said.

Context

This step comes amid a background of the escalating tensions between the United States and Panama, which was ignited by US President Donald Trump’s allegations about the restoration of Panama.

Despite the retreat from the Panagogy Jose Raul Moulino against Trump’s claims, the leader and American officials praised a modern deal led by the American Black Rock to purchase most of the Hong Kong ports work, including its assets near the Panama Channel.

In numbers

Initial studies have shown that “the potential traffic capacity through the Panama channel can reach two million barrels per day (from LPG) during a decade of time,” Vasquiz added.

What next

Vasquiz said the channel expects a decision on the pipeline in the next 12 months.

Investments of $ 8 billion in infrastructure and sustainability projects have been allocated, which are spread over the next decade.

(Ellida Moreno reports: Kylie Madi; edited by Lincoln Vist.)