{"id":17105,"date":"2016-07-05T14:02:14","date_gmt":"2016-07-05T19:02:14","guid":{"rendered":"http:\/\/panamaadvisoryinternationalgroup.com\/blog\/?p=17105"},"modified":"2016-07-05T14:02:14","modified_gmt":"2016-07-05T19:02:14","slug":"expanded-panama-canal-a-boon-for-fuel-hungry-japan","status":"publish","type":"post","link":"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/expanded-panama-canal-a-boon-for-fuel-hungry-japan\/","title":{"rendered":"Expanded Panama Canal a boon for fuel-hungry Japan"},"content":{"rendered":"

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The recent expansion of the Panama Canal — which vastly reduces the time needed for U.S. shipments of liquefied petroleum gas to reach Japan — is expected to accelerate Japan’s efforts to wean itself off its reliance on Middle Eastern LPG for a more diversified, stable supply.<\/p>\n

On June 27, when the expanded canal went into commercial operation, a Japanese vessel was the first to pass through the waterway. The\u00a0Nippon Yusen<\/a>\u00a0VLGC, or very large gas carrier, was transporting LPG for Tokyo-based Astomos Energy, an affiliate of major Japanese oil refiner Idemitsu Kosan<\/a>.<\/p>\n

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The ship is scheduled to arrive at a terminal in the Keihin district along the western coast of Tokyo Bay by the end of July.<\/p>\n

LPG is a key source of energy for Japan, where about half of the households use propane — produced from LPG — for heating purposes.<\/p>\n

The canal expansion will significantly shorten the time it takes to transport LPG from U.S. production bases on the Atlantic side. According to some estimates, the share of U.S. shipments in Japan’s LPG imports will increase to over 30% from about 20% currently. The expansion is also expected to help Japan diversify its sources of the fuel, contributing to the country’s goal of securing a more stable energy supply.<\/p>\n

Shortcut<\/b><\/p>\n

In a speech at the opening ceremony on June 26, Panamanian President Juan Carlos Varela said the expansion is significant not only for Panama but also for the world.<\/p>\n

That is certainly the case for Japan.<\/p>\n

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The main reason is that the expansion allows passage of VLGCs, which can carry huge amounts of LPG in their 36-meter-wide hulls.<\/p>\n

Large ships delivering U.S. LPG to Japan have long had to make a circuitous trip around the southern tip of Africa, a journey that can take as long as 45 days.\u00a0But with the canal expansion, the journey is vastly shortened to just 22 to 30 days.<\/p>\n","protected":false},"excerpt":{"rendered":"

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