Not content with expanding its century-old waterway, the Panama Canal Authority (ACP) is now looking at building a LNG import terminal.
The ACP, which administers the canal, has been awarded a US Trade and Development Agency grant to help fund a feasibility study for the project, which it is considering for when the expanded canal is opened next year and the waterway is expected to handle considerable liquefied natural gas tankers, reports Jude Webber in Mexico City.
Jorge Quijano, ACP chief, said in a statement:
As we near the completion of the Panama Canal Expansion, we are eager to explore new segments such as LNG, which are now possible given our enhanced capacity to accommodate longer and wider ships.
The ACP said it had no details of the size of the USTDA grant.
Kevin M. O’Reilly, chargé d’affaires for the US embassy in Panama, who signed the grant agreement along with Mr Quijano, said:
The U.S. Government is very pleased to partner with the Panama Canal Authority through this USTDA grant as the ACP looks to develop a LNG import terminal in the coming years to take advantage of the Canal expansion project.
The eight-year, $5.3bn expansion of the 100-year-old Panama Canal is nearing completion to facilitate passage of 21st century ships that can carry more than double the loads of today’s vessels.
Panama should develop an LNG import and distribution system, and sell natural gas to neighbouring countries.
Panama could buy all the LNG they want from Canada as we are developing LNG export terminals. We have vast supplies of natural gas beyond what we could ever use in a thousand years. We have so much natural gas that most of it is just left in the ground.