Business Models for Natural Gas in Panama


News from Panama / Tuesday, December 13th, 2016

lpg-bottling

A study by the ASEP analyzes the experiences in creating natural gas markets in South America and suggests various schemes for structuring the Panamanian market.

The report “Development Strategy for the natural gas market in Panama and a tight regulatory framework for this strategy for the activities of transmission and distribution of pipelines” analyzes the cases of the natural gas markets in Bolivia, Chile and Peru, and analyzes the particularities and alternative strategies for development in Panama.

From the section “Special features and situation in Panama”:

– It is a small market for natural gas and there is a terminal under construction to supply thermoelectric power and there is excess capacity for storage and regasification.

– There is a dedicated pipeline from the terminal to the thermoelectric plant that is not subject to regulation and is a kind of bypass for transport and distribution and it is of the vertical integration type as in Peru.

– LPG is subsidized enough to try to replace natural gas in the domestic sector (massification). There is no difference in between importing LPG or natural gas.