Panama could become the first nation in Central America to develop an LNG import facility, according to Alvaro Rios, the head of consultancy Gas Energy.

“LNG has become the preferred energy source for Latin America,” Rios said at the 2nd BNamericas Latin America Oil & Gas Summit in Houston, Texas.

Chile, Uruguay, Argentina, Brazil and Mexico have LNG import facilities, while Colombia is in the process of developing both import and export projects.

The expansion of the Panama Canal and the start of large-scale LNG exports from the US could see the fuel source boom in Latin America.

“Colombia will be the first country in the region to have both export and import facilities,” he said.

An EPC contract is in place between Panamá NG Power parent LNG Group Panamá and Consorcio Duro Felguera-IHI for an LNG regasification terminal. LNG Group Panamá has also signed a natural gas supply agreement with Gunvor.

LNG to Panama could be used in natural gas facilities throughout the isthmus. This year, Panamanian authorities granted a definitive license for a 670MW thermo project in Colón province, which would use gas from the import project.

BNamericas will host its 11th Southern Cone Energy Summit in Lima, Peru, on November 12-13. Click here to download the agenda.